Estimates its total variable manufacturing costs

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Reference no: EM13806186

X Company manufactures a single product and estimates its total variable manufacturing costs each month. Each unit of product requires 2.1 pounds of direct material, and the price per pound is $21.00. It takes one hour of direct labor time to manufacture a unit of product. Direct labor employees are paid $12.20 per hour. The monthly overhead cost function is $4,000+$2.05X, where X is the number of units produced.

If production next month is expected to be 1,000 units, what are estimated total variable manufacturing costs?

Reference no: EM13806186

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