Question & Answer: Baker Corporation has provided the following production and total cost data for two levels of mont…..

Baker Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product Production volume Direct materials Direct labor 9,500 units $575,700 $156,750 $666,600 closest to: (Do not r calculations.) O $1.908,580 O $1,861960 O $1768720 O $1,838,650

Baker Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. The best estimate of the total cost to manufacture 10,800 units is closest to: (Do not round intermediate calculations.) $1,908,580 $1,861,960 $1,768,720 $1,838,650

Expert Answer

	9500 units	11000 units	Change in volume	Change in cost	Unit Variable cost	Fixed cost
Direct materials	575700	666600	1500	90900	60.6	0
Direct labor	156750	181500	1500	24750	16.5	0
Manufacturing overhead	1009000	1032400	1500	23400	15.6	860800

10800 units:
Direct materials	654480
Direct labor	178200
Manufacturing overhead	1029280
Total cost	1861960

Option 2 is correct

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