Tyler Company produces one product and budgeted 220,000 units for the month of August with the following budgeted manufacturing costs.
The variable cost per unit and the total fixed costs are unchanged within a production range of 200,000 to 300,000 units per month. The total for the batch set-up cost in any month depends on the number of production batches that Tyler runs. A normal batch consists of 50,000 units unless production requires less volume. In the prior year, Tyler experienced a mixture of monthly batch sizes of 42,000 units, 45,000 units, and 50,000 units. Tyler consistently plans production each month in order to minimize the number of batches. For the month of September, Tyler plans to manufacture 260,000 units. What will be Tyler's total budgeted production costs for September?
Sent from Mail for Windows 10