{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# Chp 5 additional solutions - EXERCISE 5-2(a(b The relevant...

This preview shows pages 1–4. Sign up to view the full content.

EXERCISE 5-2 (a) (b) The relevant range is 4,000 – 9,000 units of output since a straight-line relationship exists for both direct materials and rent within this range. (c) Variable cost per unit Within the relevant range = Cost Units (4,000 – 9,000 units) = \$10,000 * 5,000* = \$2 per unit *Any costs and units within the relevant range could have been used to calculate the same unit cost of \$2. (d) Fixed cost within the relevant range = \$7,000 (4,000 – 9,000 units)

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
EXERCISE 5-3 (a) Maintenance Costs : \$4,900 – \$2,400 800 – 300 = \$2,500 500 = \$5 variable cost per machine hour 800 Machine Hours 300 Machine Hours Total costs Less: Variable costs 800 X \$5 300 X \$5 Total fixed costs \$4,900 4,000 \$ 900 \$2,400 1,500 \$ 900 Thus, maintenance costs are \$900 per month plus \$5 per machine hour. (b) \$5,000 COSTS Total Cost Line \$4,900 \$4,000 \$3,000 Variable Cost Element \$2,000 \$1,000 \$ 900 Fixed Cost Element 0 200 400 600 800 Machine Hours
EXERCISE 5-6 (a) Cost Fixed Variable Mixed Direct materials X Direct labor X Utilities X Property taxes X Indirect labor X Supervisory salaries X Maintenance X Depreciation X (b) Fixed costs= \$1,000 + \$1,800 + \$2,400 + \$300 + \$200 = \$5,700

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern