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Question 2 (5 points): Davis Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces
Question 2 (5 points): Davis Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. (SHOW your work) Production volume Direct material Direct labor Manufacturing over head 1000 20,000 7,000 15,000 4,000 80,000 7,000 45,000 having been provided the data above : 1. Determine which of the above is : Variable cost, Fixed cost, and Mixed cost 2. Find (for the mixed cost element ) the Variable cost per unit B 3. Find (for the mixed cost element ) the Total fixed Cost A 4. Find ( for the mixed cost element ) the Total cost at an activity level of 8,500 units
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