Question
Mining, Inc., is trying to identify the cost behavior of the three costs shown. Cost information is provided for six months. Cost 1 Cost 2
Mining, Inc., is trying to identify the cost behavior of the three costs shown. Cost information is provided for six months.
Cost 1 | Cost 2 | Cost 3 | |||||
Month | Units Produced | Total Costs | Cost per Unit | Total Costs | Cost per Unit | Total Costs | Cost per Unit |
1 | 8,000 | $10,000 | _____ | $24,000 | _____ | $32,000 | _____ |
2 | 10,000 | 10,000 | _____ | 29,000 | _____ | 40,000 | _____ |
3 | 12,000 | 10,000 | _____ | 33,600 | _____ | 48,000 | _____ |
4 | 14,000 | 10,000 | _____ | 36,400 | _____ | 56,000 | _____ |
5 | 16,000 | 10,000 | _____ | 38,400 | _____ | 64,000 | _____ |
6 | 18,000 | 10,000 | _____ | 39,600 | _____ | 72,000 | _____ |
Required:
Calculate the cost per unit, and then identify how the cost behaves (fixed, variable, or mixed) for each of the three costs.
Step by Step Solution
3.43 Rating (156 Votes )
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Financial and Managerial Accounting Using Excel for Success
Authors: James Reeve, Carl S. Warren, Jonathan Duchac
1st edition
1111535221, 1111535223, 9781285400914 , 978-1111993979
Students also viewed these Accounting questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App