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

Question

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

Quizplus · Accepted Answer

The Answer of 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

Farmington Corporation Has Provided the Following Production and Total Cost