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Moes Machines has the following costs in a period when production is 2,000 units: Direct materials $8,500; direct labor (variable), $9,000; straight-line depreciation, $800; rent
Moes Machines has the following costs in a period when production is 2,000 units: Direct materials $8,500; direct labor (variable), $9,000; straight-line depreciation, $800; rent (same every month), $1,200; and other fixed costs, $1,000.
What are the variable cost per unit and fixed cost per unit?
If production changes to 2,200 units, which costs will stay the same?
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If production changes to 1,800 units, what would the total variable costs and total fixed costs be?
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