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  3. a tyre company currently produces 2,000 tyres per

A Tyre company currently produces 2,000 tyres per month. The following per unit data apply...

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Accounting

A Tyre company currently produces 2,000 tyres per month. The following per unit data apply for sales to regular customers:

Direct materials

$25

Direct labour

$3

Variable manufacturing overhead

$5

Fixed manufacturing overhead

$12

Total manufacturing costs

$45

The plant has capacity for 8,000 tyres and is considering expanding production to 5,000 tyres. Compute the total cost of producing 5,000 tyres and enter the answer below.

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