Question

The following data pertains to activity and costs for two months:

June July
Activity level in units 10,000 11,000
Direct materials $ 17,000 $ ?
Fixed factory rent 21,000 ?
Other production costs 20,000 ?
Total cost $ 58,000 $ 61,300
Assuming that these activity levels are within the relevant range, the other production costs for July were: (Round intermediate calculations to 2 decimal places.)
Garrison 16e Rechecks 2017-06-28, 2017-11-07
a)$22,000
b)$20,000
c)$19,500
d)$21,600

Answer 1

The other production costs for July is $23,300.

Step-by-step explanation:

The other production costs for July can be determined by subtracting the known costs from the total costs. In this case, the known costs are the direct materials and fixed factory rent. So, we have the equation:

Other production costs for July = Total cost - Direct materials - Fixed factory rent

Substituting the given values into the equation, we get:

Other production costs for July = $61,300 - $17,000 - $21,000

Calculating the above expression, we find that the other production costs for July were $23,300.