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Question 3 The following information summarizes the company's cost structure: Variable cost per unit $1.50 Fixed cost per unit 4.5 Total cost per unit $5.80
| Question 3 | |||||||||
| The following information summarizes the company's cost structure: | |||||||||
| Variable cost per unit | $1.50 | ||||||||
| Fixed cost per unit | 4.5 | ||||||||
| Total cost per unit | $5.80 | ||||||||
| Units produced and sold | 45,000 | ||||||||
| Assume that all of the activity levels mentioned in this problem are within the relevant range. | |||||||||
| Required: | |||||||||
| how would you prepare a schedule showing predictions for the following items at the 40,000-unit level of activity. Round answers to two decimal places. | |||||||||
| a. Total variable cost. (1 Mark) | |||||||||
| b. Total fixed cost. (1 Mark) | |||||||||
| c. Variable cost per unit. (1 Mark) | |||||||||
| d. Fixed cost per unit.(1 Mark) | |||||||||
| Note: The total fixed cost is $4.50 45,000 = $202,500. |
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Cost Accounting A Managerial Emphasis
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
6th Canadian edition
978-0132893534, 9780133389401, 132893533, 133389405, 978-0133392883
