Doran Technologies Produces a Single Product

Essay

Doran Technologies produces a single product. Expected manufacturing costs are as follows:
Variable costs
Direct materials $4.00 per unit
Direct labor $1.20 per unit
Manufacturing overhead $0.95 per unit
Fixed costs per month
Depreciation $6,000
Supervisory salaries $13,500
Other fixed costs $3,850
Required:
Estimate manufacturing costs for production levels of 25,000 units, 30,000 units, and 35,000 units per month.