Glass House Manufacturing Currently Produces 1,000 Glasses Per Month The Plant Has Capacity for 2,000 Glasses

question 53

Essay

Glass House Manufacturing currently produces 1,000 glasses per month.The following per unit data for thousand apply for sales to regular customers:
$$\begin{array} { l r } \text { Direct materials } & \$ 250 \\\text { Direct manufacturing labor } & 40 \\\text { Variable manufacturing overhead } & 70 \\\text { Fiæed manufacturing overhead } & \underline { 50 } \\ { \text { Total manufacturing costs } } & \$ 410 \\\hline\end{array}$$ The plant has capacity for 2,000 glasses.Plant supervisor's salary is $15,000.
Required:
a.What is the total cost of producing 1,000 glasses?
b.What is the total cost of producing 1,500 glasses?
c.What is the per unit cost when producing 1,500 glasses?

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Definitions:

After-School Program

Educational or recreational activities provided for children after the end of the regular school day.

Temporal Precedence

Temporal precedence refers to a chronological relationship in which a cause precedes its effect in time, indicating a possible causal relationship.

Covariation

The degree to which two variables vary together, which is used to suggest a potential causal relationship between them.

External Forces

Outside influences for change.