Rail Bogies Manufacturing Currently Produces 1000 Bogies Per Month The Plant Has Capacity for 2000 Bogies

Essay

Rail Bogies Manufacturing currently produces 1000 bogies per month.The following per unit data apply for sales to regular customers:
$\begin{array}{lr}\text { Direct materials } & \$ 2000 \\\text { Direct manufacturing labour } & 300 \\\text { Variable manufacturing overhead } & 600 \\\text { Fixed manufacturing overhead } & \underline{400} \\{\text { Total manufacturing costs }} & \$ 3300\end{array}$
The plant has capacity for 2000 bogies.
Required:
a.What is the total cost of producing 1000 bogies?
b.What is the total cost of producing 1500 bogies?
c.What is the per unit cost when producing 1500 bogies?
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