Dandenong Tyre Company Currently Produces 1000 Tyres Per Month The Plant Has Capacity for 3000 Tyres and Is Considering

Multiple Choice

Dandenong Tyre Company currently produces 1000 tyres per month.The following per unit data apply for sales to regular customers:
$$\begin{array} { l r } \text { Direct materials } & \$ 20 \\\text { Direct manufacturing labour } & 3 \\\text { Variable manufacturing overhead } & 6 \\\text { Fixed manufacturing overhead } & \underline { 10 } \\\text { Total manufacturing costs } & \$ 39\end{array}$$
The plant has capacity for 3000 tyres and is considering expanding production to 2000 tyres.What is the total cost of producing 2000 tyres?

A) $78 000
B) $62 000
C) $68 000
D) $39 000