Churchill Company has the following information available regarding costs at various levels of monthly production:
Required:
$\begin{array}{lrr}
\text { Production volume } & 7,000 & 10,000 \
\text { Direct materials } & \$ 70,000 & \$ 100,000 \
\text { Direct labour } & 56,000 & 80,000 \
\text { Indirect materials } & 21,000 & 30,000 \
\text { Supervisors' salaries } & 12,000 & 12,000\\text { Depreci ation on plant } & 10,000 & 10,000 \
\text { Maintenance } & 32,000 & 44,000 \
\text { Utilities } & 15,000 & 21,000 \
\text { Insurance on plant and equipment } & 1,600 & 1,600 \
\text { Property taxes on plant } & 2,000 & 2,000 \
\text { Total } & \$ 219,600 & \$ 300,600 \
\end{array}$

Question

Churchill Company has the following information available regarding costs at various levels of monthly production:
Required:
 $\begin{array}{lrr}
\text { Production volume } & 7,000 & 10,000 \
\text { Direct materials } & \$ 70,000 & \$ 100,000 \
\text { Direct labour } & 56,000 & 80,000 \
\text { Indirect materials } & 21,000 & 30,000 \
\text { Supervisors' salaries } & 12,000 & 12,000\\text { Depreci ation on plant } & 10,000 & 10,000 \
\text { Maintenance } & 32,000 & 44,000 \
\text { Utilities } & 15,000 & 21,000 \
\text { Insurance on plant and equipment } & 1,600 & 1,600 \
\text { Property taxes on plant } & 2,000 & 2,000 \
\text { Total } & \$ 219,600 & \$ 300,600 \
\end{array}$

Quizplus · Accepted Answer

The Answer of Churchill Company has the following information available regarding costs at various levels of monthly production:
Required:
 $\begin{array}{lrr}
\text { Production volume } & 7,000 & 10,000 \
\text { Direct materials } & \$ 70,000 & \$ 100,000 \
\text { Direct labour } & 56,000 & 80,000 \
\text { Indirect materials } & 21,000 & 30,000 \
\text { Supervisors' salaries } & 12,000 & 12,000\\text { Depreci ation on plant } & 10,000 & 10,000 \
\text { Maintenance } & 32,000 & 44,000 \
\text { Utilities } & 15,000 & 21,000 \
\text { Insurance on plant and equipment } & 1,600 & 1,600 \
\text { Property taxes on plant } & 2,000 & 2,000 \
\text { Total } & \$ 219,600 & \$ 300,600 \
\end{array}$

Churchill Company Has the Following Information Available Regarding Costs at Various