Exercise 13-3 Distinction between avoidable costs and cost behavior LO 13-1 Benson Company makes fine jewelry that it sells to department stores throughout the United States. Benson is trying to decide which of the two bracelets to manufacture. Cost data pertaining to the two choices follow: Cost of materials per unit Cost of labor per unit Advertising cost per year Annual depreciation on existing equipment Bracelet A Bracelet B $ 39 $ 39 49 49 8,800 7,400 6,600 5,100 Required a. Identify the fixed costs and determine the amount of fixed cost for each product. b. Identify the variable costs and determine the amount of variable cost per unit for each product c. Identify the avoidable costs and determine the amount of avoidable cost for each product. es Complete this question by entering your answers in the tabs below. Required A Required B Required C Identify the fixed costs and determine the amount of fixed cost for each product. Bracelet A Fixed Costs Bracelet B $ 0 $ 0 Total fixed costs Exercise 13-3 Distinction between avoidable costs and cost behavior LO 13-1 Benson Company makes fine jewelry that it sells to department stores throughout the United States. Benson is trying to decide which of the two bracelets to manufacture. Cost data pertaining to the two choices follow: Bracelet A Bracelet B Cost of materials per unit $ 39 $ Cost of labor per unit 49 Advertising cost per year 8,800 7,400 Annual depreciation on existing equipment 6,600 5,100 39 49 Required a. Identify the fixed costs and determine the amount of fixed cost for each product. b. Identify the variable costs and determine the amount of variable cost per unit for each product. c. Identify the avoidable costs and determine the amount of avoidable cost for each product Complete this question by entering your answers in the tabs below. Required A Requirede Required Identify the variable costs and determine the amount of variable cost per unit for each product. Variablo Costs Bracelet A Bracelet B Total variable costs per unit $ 0 $ 0 Exercise 13-3 Distinction between avoidable costs and cost behavior LO 13-1 Benson Company makes fine jewelry that it sells to department stores throughout the United States. Benson is trying to decide which of the two bracelets to manufacture. Cost data pertaining to the two choices follow: Cost of materials per unit Cost of labor per unit Advertising cost per year Annual depreciation on existing equipment Bracelet A Bracelet B $ 39 $ 39 49 8,800 7,400 6,600 5,100 Required a. Identify the fixed costs and determine the amount of fixed cost for each product. b. Identify the variable costs and determine the amount of variable cost per unit for each product. c. Identify the avoidable costs and determine the amount of avoidable cost for each product. Complete this question by entering your answers in the tabs below. Required a Required B Required C Identify the avoidable costs and determine the amount of avoidable cost for each product. Avoldablo Costs Bracelet A Bracelet B
