Internet Exercise 5.1 - a Variable cost per unit b Total...

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Valerie Bodden K. (10-0014) Cost Accounting Professor Sandoval March 29, 2011 Internet Exercise 5.1 Mateo Company's average cost per unit is $1.425 at the 16,000 unit level of activity and $1.38 at the 20,000 unit level of activity. Assume that all of the activity levels mentioned in this problem are within the relevant range. Required: Predict the following items for Mateo Company:
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Unformatted text preview: a. Variable cost per unit. b. Total fixed cost per period. c. Total expected costs at the 18,000 unit level of activity. Answers: a. Amount Cost High 20,000 units $27,600.00 Low 16,000 units $22,800.00 Change 4,000 units $4,800.00 VC= 4,800/4000= $1.2 b. FC= (20,000)(1.38) – (20,000)(1.2) = $3,600.00 c. Units: 18,000 Y= 3,600(1.2)(18,000)= 3,600+21,600 = $25,200...
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This note was uploaded on 08/09/2011 for the course ACCOUNTING --- taught by Professor --- during the Spring '11 term at Universidad Iberoamericana.

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