Farmington Corporation Has Provided the Following Production and Total Cost

question 164

Multiple Choice

Farmington Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. $$\begin{array} { | l | r r | } \hline \text { Production volume } & 6,000 \text { units } &7,000 \text { units } \\\hline \text { Direct materials } & \$ 195,000 & \$ 227,500 \\\hline \text { Direct labor } & \$ 113,400 & \$ 132,300 \\\hline \text { Manufacturing overhead } & \$ 913,200 & \$ 931,700 \\\hline\end{array}$$ The best estimate of the total cost to manufacture 6,300 units is closest to:

• A)$1,162,350
• B)$1,242,570
• C)$1,222,515

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Definitions:

Cortex

The outer layer of an organ or structure, such as the cerebral cortex of the brain or the cortex of the kidney.

Epidermis

The outer layer of cells covering an organism, particularly the surface layer of skin.

Root Hairs

Thin, hair-like extensions from a root's surface that increase the surface area for water and nutrient absorption from the soil.

Eudicot

A major group of flowering plants that are characterized by having two seed leaves, or cotyledons, and a range of other structural features.