Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Supposed company XYZ produces and sells standardized package boxes, For the month of August, the total cost of producing 120,000 units of these boxes was

Supposed company XYZ produces and sells standardized package boxes, For the month of August, the total cost of producing 120,000 units of these boxes was $308,200. The breakdown of the cost is as follows. August Sales quantity Production Cost Product parts Assembly labor Utilities Rent Building depreciation Total production cost 90,000 $96,200 76,000 34,000 58,000 44,000 $308,200 Suppose the costs of product parts and assembly labor are considered variable cost and the costs of rent and depreciation are considered fixed cost. The accounting manager at XYZ determined that 40% of utilities are fixed cost and 60% are variable cost. Based on this information, the variable cost per unit is estimated to be $ 1.61 (round to two decimal places) and the total fixed cost is estimated to be $ 115600 (no rounding). Suppose the sales quantity rose to 100,000 units, the estimated total cost (variable plus fixed) is $ rounding). (no
image text in transcribed
image text in transcribed
Supposed company XYZ produces and sells standardized package boxes, For the month of August, the total cost of producing 120,000 units of these boxes was $308,200. The breakdown of the cost is as follows. Suppose the costs of product parts and assembly labor are considered variable cost and the costs of rent and depreciation are considered fixed cost. The accounting manager at XYZ determined that 40% of utilities are fixed cost and 60% are variable cost. Based on this information, the variable cost per unit is estimated to be $ (round to two decimal places) and the total fixed cost is estimated to be \$ (no rounding). Suppose the sales quantity rose to 100,000 units, the estimated total cost (variable plus fixed) is $ lno rounding). Supposed company XYZ produces and sells standardized package boxes, For the month of August, the total cost of producing 120,000 units of these boxes was $308,200. The breakdown of the cost is as follows. Suppose the costs of product parts and assembly labor are considered variable cost and the costs of rent and depreciation are considered fixed cost. The accounting manager at XYZ determined that 40% of utilities are fixed cost and 60% are variable cost. Based on this information, the variable cost per unit is estimated to be $ (round to two decimal places) and the total fixed cost is estimated to be \$ (no rounding). Suppose the sales quantity rose to 100,000 units, the estimated total cost (variable plus fixed) is $ (no rounding)

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

Essentials Of Cost Accounting For Health Care Organizations

Authors: Steven A. Finkler

1st Edition

0834205289, 978-0834205284

More Books

Students also viewed these Accounting questions

Question

Create a systems request for a proposed project.

Answered: 1 week ago