United Motors specializes in producing one specialty vehicle. It is called Surfer and is styled to...

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Accounting

United Motors specializes in producing one specialty vehicle. Itis called Surfer and is styled to easily fit multiple surfboards inits back area and? top-mounted storage racks.
United has the following manufacturing? costs:
United currently produces 180 vehicles per month
Plant management? costs,
$1,728,000 per year
Cost of leasing? equipment,
$2,856,000 per year
?Workers' wages,
$800 per Surfer vehicle produced
Direct materials? costs: Steel,
$1,600 per? Surfer; Tires, $150
per? tire, each Surfer takes 5 tires? (one spare)
City? license, which is charged monthly based on the number oftires used in? production:
?0-500 tires
$70,000
?501-1,000 tires
$80,000
more than? 1,000 tires
$230,000
Requirements
1.
What is the variable manufacturing cost per? vehicle? What isthe fixed manufacturing cost per? month?
2.
Plot a graph for the variable manufacturing costs and a secondfor the fixed manufacturing costs per month. How does the conceptof relevant range relate to your? graphs? Explain.
3.
What is the total manufacturing cost of each vehicle if 95vehicles are produced each? month? 220 vehicles? How do you explainthe difference in the manufacturing cost per? unit?

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1 Variable mfg cost per vehicle cost ofsteeltirewages 1600 1505 800 3150Fixed manufacturing cost per month plant management costs cost of leasing equipment city license 172800012 285600012 80000 as no See Answer

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Plant management? costs, $1,728,000 per year
Cost of leasing? equipment, $2,856,000 per year
?Workers' wages, $800 per Surfer vehicle produced
Direct materials? costs: Steel, $1,600 per? Surfer; Tires, $150 per? tire, each Surfer takes 5 tires? (one spare)
City? license, which is charged monthly based on the number oftires used in? production:
	?0-500 tires	$70,000
	?501-1,000 tires	$80,000
	more than? 1,000 tires	$230,000

1.	What is the variable manufacturing cost per? vehicle? What isthe fixed manufacturing cost per? month?
2.	Plot a graph for the variable manufacturing costs and a secondfor the fixed manufacturing costs per month. How does the conceptof relevant range relate to your? graphs? Explain.
3.	What is the total manufacturing cost of each vehicle if 95vehicles are produced each? month? 220 vehicles? How do you explainthe difference in the manufacturing cost per? unit?