Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pillar Drycleaners has capacity to clean up to 6,000 garments per month. Requirements 1. Complete the schedule below for the three volumes shown. 2.

image text in transcribed

Pillar Drycleaners has capacity to clean up to 6,000 garments per month. Requirements 1. Complete the schedule below for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, Damien Pillar, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 3.000 garments. Would he overestimate or underestimate his total costs? By how much? Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest pent and all total costs to the nearest whole dollar) 3,000 t 4,500 Garments Garments 6,000 Garments Total variable costs 1500 $ 2.250 3000 18000 18000 18000 Total fixed costs 19500 20250 21000 Total operating costs Variable cost per garment $ 2.00 Fixed cost per garment Average coat par garment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Cost Accounting

Authors: Edward J. Vanderbeck, Maria Mitchell

17th edition

9781305480520, 1305087402, 130548052X, 978-1305087408

More Books

Students also viewed these Accounting questions

Question

=+b) Why is there no predictor variable for December?

Answered: 1 week ago