Purchase Solution

Production and average cost

Not what you're looking for?

Ask Custom Question

(Please see the attached file for the complete problem description).
Please assist with this project on Production Cost and explain your answer.

The following informtion provides the amount of cost incurred in August for the cost items indicated. During August, 7,700 units of the firm's single product were manufactured.
Raw materials $41,500
Factory depreciation expense 40,600
Direct labor 99,800
Production supervisor's salary 6,100
Computer rental expense 4,000
Maintenance supplies used 600
a. How much cost would you expect to be incurred for each of these items during September when 9,300 units of the product are planned for production? (Do not round intermediate calculations and round your final answer to nearest whole dollar.)

Raw materials
Factory depreciation expense

Direct labor
Production supervisor's salary
Computer rental expense
Maintenance supplies used
Total cost

b1. Calculate the average total cost per unit for the 7,700 units manufactured in August. (Round your answer to 2 decimal places.)

Average total cost per unit =

b2. It is meaningful to use the average total cost figure in part b1 to predict the cost in subsequent months? (True or False).

Attachments
Purchase this Solution
Solution Summary

This solution helps to estimate the production and average cost in Excel.

Purchase this Solution
Free BrainMass Quizzes
Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

View More Free Quizzes
Related BrainMass Solutions

  • Production and cost analysis in the short and long run

    246357 Production and Cost Analysis in the Short-Run; Production and Cost Analysis in the Long-Run Answers the question: It cost a company $50,000 to set up a chip manufacturing plant.

  • The minimum average cost

    439819 Cost Functions: Average, Marginal, and Minimal Average Costs Please refer to the attached file.

  • Demand Function, Cost Function

    The cost function to produce x items is given by: C(x)=1/9x^2 - 2x + 100 in dollars. Determine the production level of x that will minimize the average cost for this product. What is the average cost at this production level?

  • Production Costs for General Motors

    208646 Cost of production for GM: explain variable, fixed, average, marginal, total cost Use GM (General Motors) as an example, explain variable, fixed, average, marginal, and total cost of production.

  • Marginal cost - Comparing Marginal and Average Concepts

    When production is increased to 1,001 units and total production costs increase by $200 to $1,000,200 the average cost per unit is $999.20.

  • Calculating optimal size of production & inventory costs

    a) What is the optimal size of the production run? b) What is the average holding cost per year? c) What is the average setup cost per year? d) What is the total cost per year, including the cost of the lights?

  • Analyzing learning curves, cost and production function

    Estimate total cost and average total cost for the coming year at a projected volume of 4,000 cases. Please find my response in the attached file. 8.1 Cost and Production Functions.

  • Economics: Important Managerial Tasks

    For example, if the average fixed cost of producing a bucket is $4 and the average variable cost is $8 and so the total average cost is $12, if the demand is such that the price realized is more than $12 the manager should continue production in the long

  • Selecting the suitable options

    d) the sum of average fixed cost and average variable cost. 3) In the short run, as output increases? a) the difference between average total cost and average variable cost decreases.

View More Related Solutions