Respuesta :
Answer:
Fixed Costs per month is $48,000, while Variable Costs per unit is $1.30.
Explanation:
Variable cost per unit = ($165,000 - $100,000) ÷ (90,000 - 40,000) = $1.3 per unit
Total cost = Total Fixed Cost + Total Variable Cost ................. (1)
Total Variable Cost = Variable cost per unit × Units at any level of activity
Using high levels of activity and substitute into equation (1), we have:
$165,000 = Total Fixed Cost - ($1.3 × 90,000)
Total Fixed Cost = $165,000 - ($1.3 × 90,000) = $165,000 - $117,000 = $48,000
Therefore, Fixed Costs per month is $48,000, while Variable Costs per unit is $1.30.
Answer:
Fixed cost per month is $48,000
Variable cost per unit is $1.30
Explanation:
Variable cost= cost at higher activity-cost at lower activity/(labor hours at higher activity-labor hours at lower activity)
cost at higher activity is $165,000
cost at lower activity is $100,000
labor hours at higher activity is 90,000 hours
labor hours at lower activity is 40,000
variable cost=($165,000-$100,000)/(90,000-40,000)=$1.30 per hour
Fixed cost=total cost-(variable cost*number of hours)
The fixed cost at higher activity is computed thus:
Fixed cost=$165,000-(90000*$1.3)
fixed cost=$165,000-$117,000=$48,000
