Refer to Exercise 2-18. Now assume that Carson Company produced 100,000 thermometers. Required: 1. What is the

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Refer to Exercise 2-18. Now assume that Carson Company produced 100,000 thermometers.

Required:

1. What is the total maintenance cost incurred by Carson last year?

2. What is the total fixed maintenance cost incurred by Carson last year?

3. What is the total variable maintenance cost incurred by Carson last year?

4. What is the maintenance cost per unit produced?

5. What is the fixed maintenance cost per unit?

6. What is the variable maintenance cost per unit?

Exercise 2-18.

Carson Company manufactures digital thermometers. Based on past experience, Carson has found that its total maintenance costs can be represented by the following formula: Maintenance cost \(=\$ 24,000+\$ 0.30 \mathrm{X}\), where \(\mathrm{X}=\) Number of digital thermometers. Last year, Carson produced 200,000 thermometers. Actual maintenance costs for the year were as expected.

Required:

1. What is the total maintenance cost incurred by Carson last year?

2. What is the total fixed maintenance cost incurred by Carson last year?

3. What is the total variable maintenance cost incurred by Carson last year?

4. What is the maintenance cost per unit produced?

5. What is the fixed maintenance cost per unit?

6. What is the variable maintenance cost per unit?

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Fundamental Cornerstones Of Managerial Accounting

ISBN: 9780333623183

1st Edition

Authors: Dan L. Heitger, Maryanne M. Mowen, Don R. Hansen

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