Letitia Corp. manufactures kitchen timers. The company incurred the following costs to produce 25,000 timers...

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Accounting

Letitia Corp. manufactures kitchen timers. The company incurred the following costs to produce 25,000 timers in May 2009:

Timer mechanisms - $11,250

Resin bases - $8,750

Direct labor - $9,000

Machinery depreciation (calculated on straight-line basis) - $3,750

Supervisory salaries - $6,000

Utilities - $2,000

Total - $40,750

Answer the following:

Considering behavior in relationship to activity changes; how would each of these costs be classified?

What did each timer cost?

If Letitia Corp. increases production in June 2009 to 30,000 units, what will be the total cost of each cost component? If you cannot determine the total cost of a component, discuss the reason.

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