Unformatted text preview: the average cost per unit for direct materials used and the average cost per unit for rent on the factory building. 3. In the following year the company expects to produce 5,000 units. What average cost per unit and total cost would you expect to be incurred for direct materials? For rent on the factory building? (Assume that direct materials is a variable cost and that rent is a fixed cost.) 4. Explain to the president the reason for any difference in the average cost per unit between (2) and (3) above....
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- Spring '11
- Average cost, $242,000, $229,000, $269,000