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# Production and average cost

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(Please see the attached file for the complete problem description).

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).