Exercise 2-3A (Algo) Determining fixed cost per unit LO 2-1 Franklin Corporation incurs the following annual fixed costs: Item Depreciation Officers' salaries Long-term lease Property taxes Cost $ 60,000 180,000 60,000 14,000 Required Determine the total fixed cost per unit of production, assuming that Franklin produces 4,500, 5,000, or 5,500 units. (Round your answers to 2 decimal places.) 4,500 6,000 5,600 Units Produced Foxed cost per unit Exercise 2-4A (Algo) Determining total variable cost LO 2-1 The following variable production costs apply to goods made by Fanning Manufacturing Corporation: Item Materials Labor Variable overhead Total Cost per unit $11.09 4.00 0.25 $15.25 Required Determine the total variable production cost, assuming that Fanning makes 9,000,19,000, or 29,000 units. 9,000 19,000 29,000 Units Produced Total variable cost Exercise 2-6A (Algo) Fixed versus variable cost behavior LO 2-1 Zachary Trophies makes and sells trophies it distributes to little league ballplayers. The company normally produces and sells between 4,000 and 10,000 trophies per year. The following cost data apply to various activity levels: Required Complete the preceding table by filling in the missing amounts for the levels of activity shown in the first row of the table. (Round "Cost per unit" answers to 2 decimal places.) 4,000 6,000 8,000 10,000 Number of Trophies Total costs incurred Fixed $ Variable 64,000 42,000 106,000 S Total costs $ O Cost per unit Fixed Variable Total cost per trophy 16.00 10.50 26.50 s $ 0.00 $ 0.00 0.00 $ Exercise 2-7A (Algo) Fixed versus variable cost behavior LO 2-1 Thornton Entertainment sponsors rock concerts. The company is considering a contract to hire a band at a cost of $70,000 per concert. Required a. What are the total band cost and the cost per person if concert attendance is 7,000, 7,500, 8,000, 8,500, or 9,000? b. Is the cost of hiring the band a fixed or a variable cost? Complete this question by entering your answers in the tabs below. Required A Required B What are the total band cost and the cost per person if concert attendance is 7,000, 7,500, 8,000, 8,500, or 9,000? (Round Cost per person" answers to 2 decimal places.) 7,000 7,500 8,000 8,500 9,000 Number attending Total cost of concert Cost per person Required A Required B > Exercise 2-7A (Algo) Fixed versus variable cost behavior LO 2-1 Thornton Entertainment sponsors rock concerts. The company is considering a contract to hire a band at a cost of $70,000 per concert. Required a. What are the total band cost and the cost per person if concert attendance is 7000, 7500. 8.000, 8,500, or 9.000? b. Is the cost of hiring the band a fixed or a variable cost? Complete this question by entering your answers in the tabs below. Required A Required B Is the cost of hiring the band a fixed or a variable cost? Since the cost of hiring a band remains at regardless of the number attending, it is a
