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.

Required:

1. If 15,000 units are produced, what is the variable cost per unit?
2. If 12,000 units are produced, what is the variable cost per unit?
3. Comment briefly on your answers to (a) and (b).
4. If 19,000 units are produced, what are the total variable costs?

B.

Refer to the following data:

Direct material used $180 000

Advertising costs $ 5 000

Indirect labour $ 8 000

Rent on corporate office $ 20 000

Depreciation on factory equipment $ 60 000

Direct labour $ 30 000

Factory cleaners wages $ 20 000

Indirect materials $ 35 000

Required (show your workings for each question):

Determine each of the following costs: (list the costs under each cost category when calculating the answer).

1. Product costs
2. Period costs