Asked by Krystina Edwards on Jul 12, 2024
Verified
Doran Technologies produces a single product. Expected manufacturing costs are as follows: Estimate manufacturing costs for production levels of 25,000 units, 30,000 units, and 35,000 units per month.
Estimated Manufacturing Costs
The projected or forecasted costs associated with the production of goods, including estimates for materials, labor, and overhead before the actual production takes place.
Production Levels
The amount of output or goods a company produces within a specific period, indicating the scale of its production operations.
Units Per Month
The quantity of products or services that a company produces or sells in a month.
- Assess how changes in production scale impact financial planning.
- Comprehend the process involved in preparing a cost of goods sold budget and its importance.
Verified Answer
NH
Nicki HashleyJul 16, 2024
Final Answer :
At 25,000 units = [25,000 × ($4.00 + $1.20 + $0.95)] + ($6,000 + $13,500 + $3,850) = $177,100
At 30,000 units = [30,000 × ($4.00 + $1.20 + $0.95)] + ($6,000 + $13,500 + $3,850) = $207,850
At 35,000 units = [35,000 × ($4.00 + $1.20 + $0.95)] + ($6,000 + $13,500 + $3,850) = $238,600
At 30,000 units = [30,000 × ($4.00 + $1.20 + $0.95)] + ($6,000 + $13,500 + $3,850) = $207,850
At 35,000 units = [35,000 × ($4.00 + $1.20 + $0.95)] + ($6,000 + $13,500 + $3,850) = $238,600
Learning Objectives
- Assess how changes in production scale impact financial planning.
- Comprehend the process involved in preparing a cost of goods sold budget and its importance.