00:01
Hello students, here is a question.
00:02
Chandravta corporation relevant rate of activity is 3200 units to 8000 units.
00:08
When it produces and sells 5600 units, its average cost per unit are as follow.
00:15
The average cost unit for direct material is $7 .25, direct labor is 3 .50, variable manufacturing overhead is 1 .30, fixed manufacturing overhead is $3, fixed selling expenses are 0 .90, fixed administrative expenses are 0 .60, sales so the commission is 0 .70, the variable administrative expenses are 0 .60.
00:39
If 7000 units are produced, the total amount of fixed manufacturing cost incurred in the closest to.
00:46
So, we have following options given here based on that we have to calculate this problem.
00:51
So, let us discuss the answer for this.
00:53
So, when manufacturing units are engaged in the production of a product or rendering a service, then the cost spent during the period are classified as manufacturing cost.
01:03
It includes even those cost that have no relations with the product or a process...