Dandenong Tyre Company Currently Produces 1000 Tyres Per Month The Plant Has Capacity for 3000 Tyres and Is Considering

question 185

Multiple Choice

Dandenong Tyre Company currently produces 1000 tyres per month.The following per unit data apply for sales to regular customers:
$$\begin{array} { l r } \text { Direct materials } & \$ 20 \\\text { Direct manufacturing labour } & 3 \\\text { Variable manufacturing overhead } & 6 \\\text { Fixed manufacturing overhead } & \underline { 10 } \\\text { Total manufacturing costs } & \$ 39\end{array}$$
The plant has capacity for 3000 tyres and is considering expanding production to 2000 tyres.What is the total cost of producing 2000 tyres?

• A)$78 000
• B)$62 000
• C)$68 000
• D)$39 000

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Definitions:

Non-Renewable Energy Resources

Energy sources that cannot be replenished within a human lifespan, including fossils fuels like coal, oil, and natural gas.

Potentially Renewable Energy

refers to energy sources that can be replenished over a short timescale through human intervention or natural processes, such as biomass energy.

Factory Employment

Work related to the operation of manufacturing facilities where goods are produced on a large scale.

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