Internet Exercise 5.2

# Internet Exercise 5.2 - unit; and (f) the average total...

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Valerie Bodden K. (10-0014) Cost Accounting Professor Sandoval March 29, 2011 Exercise 5.2 Peace and Love Corporation reports that at an activity level of 7,600 units, its total variable cost is \$182,856 and its total fixed cost is \$444,296. Required: For the activity level of 7,900 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per
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Unformatted text preview: unit; and (f) the average total cost per unit. Assume that this activity level is within the relevant range. A) Total VC = \$182,856 B) Total FC = \$444,296 C) TC = 444,296 + 182,856 = \$627,152 D) The avg. variable cost per unit = 182,856 / 7600 = \$24.06 E) The avg. fixed cost per unit =444,296 / 7600 = \$58.46 F) Avg. total cost per unit = 627,152 / 7600 = \$82.52...
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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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