Schuh Enterprises manufactures baseballs and identified the following costs associated with their manufacturing activity (V = Variable; F = Fixed). The following information is available for the month of June when 25,000 baseballs were produced, but only 23,500 baseballs were sold. (Assume normal production ranges from 15,000 to 40,000 baseballs) Power to run plant equipment (V) S 25,000 Other selling costs (V) $149, 150 Indirect labor (F) S 50,000 Property taxes on building (F) $ 12,500 Marketing costs (V) $ 30,000 Factory Supervisor salaries (F) $125,000 Direct materials used (V) $500,000 Depreciation on plant equipment (F) S68,000 Shipping costs to customer (V) $ 48,800 Indirect material and supplies (V). $ 37,500 Direct labor (V) S250,000 Administrative salaries (F) $300,000 Insurance on factory building (F) S 62,500 Utilities, factory (V) $ 50,000 General office costs (F) $ 48,000
Compute the following amounts for July, assuming 30,000 baseballs were produced and sold:
Total manufacturing costs.
A. S 1,411,560
B. $ 1,180,500
C. $ 1,353,000
D. $ 1,416,600