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a) Hyundai Company has a relevant range of production between 10,000 and 20,000 units. The following cost data represents average variable costs per unit for
a) Hyundai Company has a relevant range of production between 10,000 and 20,000 units. The following cost data represents average variable costs per unit for 15,000 units of production.
Question 1 3) Hyundai Company has a relevant range of production between 10,000 and 20,000 units. The following cost data represents average variable costs per unit for 15,000 units of production. Average Cost per unit Direct materials S12 Direct labor 10 Variable manufacturing overhead 5 Fixed manufacturing overhead 8 Required: i) If 15,000 units are produced, what is the variable cost per unit? ii} If 12,000 units are produced, what is the variable cost per unit? iii) Comment briey on your answers to la) and lb). iv) If 19,000 units are produced, what are the total variable costs? (1 mark) b} Refer to the following data: Direct material used $130 000 Advertising costs 5 5 000 Indirect labour 5 3 000 Rent on corporate office S 20 000 Depreciation on factory equipment $ 60 000 Direct labour S 30 000 Factory cleaners wages 5 20 000 Indirect materials S 35 000 Required [show your workings for each question): Determine each of the following costs: (list the costs under each cost categoryr when calculating the answer). i) Product costs ii} Period costs AStep by Step Solution
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