Question
EcoManufacture Ltd. needs to assess the cost behavior of three different costs over a period of three months. Month Units Produced Total Cost WW Cost
EcoManufacture Ltd. needs to assess the cost behavior of three different costs over a period of three months.
| Month | Units Produced | Total Cost WW | Cost per Unit WW | Total Cost XX | Cost per Unit XX | Total Cost YY | Cost per Unit YY |
|---|---|---|---|---|---|---|---|
| 1 | 1,500 | $3,000 | $5,000 | $4,500 | |||
| 2 | 3,000 | $3,000 | $6,500 | $9,000 | |||
| 3 | 750 | $3,000 | $4,000 | $2,250 |
Required: a. Determine the cost per unit for each cost and classify them as fixed, variable, or mixed. Justify your answers.
b. Explain how knowledge of cost behavior can benefit pricing and budgeting processes.
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Cost Behavior Assessment EcoManufacture Ltd Cost Behavior Assessment Part a Determine the Cost per U...
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Management and Cost Accounting
Authors: Colin Drury
8th edition
978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887
