Answer:
The right response is "$107.7".
Explanation:
The given values are:
Total variable production eng. cost
= $732,480
Total fixed production eng. cost
= $180,400
Now,
Variable cost per machine hour will be:
= [tex]\frac{732,480}{8,400}[/tex]
= [tex]87.2[/tex] ($)
Fixed cost per unit will be:
= [tex]\frac{180,400}{8,800}[/tex]
= [tex]20.5[/tex] ($)
hence,
Total production cost will be:
= [tex]Total \ variable \ production \ eng. \ cost+Fixed \ cost[/tex]
On substituting the values, we get
= [tex]87.2+20.5[/tex]
= [tex]107.7[/tex] ($)
