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PCB Corporation

Price: $1.99


PCB Corporation manufactures a single product. Monthly production costs incurred
in the manufacturing process are shown below for the production of 3,000 units. The utilities
and maintenance costs are mixed costs. The fi xed portions of these costs are $300 and
$200, respectively.


Production in Units  3,000
Production Costs 
Direct materials  $7,500
Direct labor  18,000
Utilities  2,100
Property taxes  1,000
Indirect labor  4,500
Supervisory salaries  1,900
Maintenance  1,100
Depreciation  2,400

Instructions
(a) Identify the above costs as variable, fi xed, or mixed.
(b) Calculate the expected costs when production is 5,000 units.

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