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Swansea Manufacturing currently produces 3,000 tires per month. The following per unit data for ...

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Swansea Manufacturing currently produces 3,000 tires per month. The following per unit data for ...

Swansea Manufacturing currently produces 3,000 tires per month. The following per unit data for 3,000 tires apply for sales to regular customers:

Direct materials$38
Direct manufacturing labor14
Variable manufacturing overhead19
Fixed manufacturing overhead20
Total manufacturing costs $91

The plant has capacity for 5,000 tires and is considering expanding production to 4,000 tires. What is the total cost of producing 4,000 tires?
A) $364,000
B) $344,000
C) $209,000
D) $288,000

Textbook

Cost Accounting: A Managerial Emphasis

Edition: 16^th

Authors: Horngren, Datar, Rajan

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Thanks for your help!!

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