Relevant Range and Fixed and Variable Costs Vogel Inc. range, the following part
ID: 2401517 • Letter: R
Question
Relevant Range and Fixed and Variable Costs Vogel Inc. range, the following partially completed manufacturing cost schedule has been prepared: Components produced Total costs: manufactures memory chips for electronic toys within a relevant range of 76,800 to 128,000 memory chips per year. Within this 76,800 96,000 128,000 0) Total variable costs Total fixed costs. . $27,648 30,720 $58,368 Cost per unit: Variable cost per unit . . Fixed cost per unit. . Complete the cost schedule below. Cost Report Components produced Total costs: Total variable costs Total fixed costs Total costs Cost per Unit When computing the cost per unit, round to two decimal places. Round all other values to the nearest dolla 76,800 96,000 128,000 $27,648 (d) 30,720 (e) G) l(k) 5 $58,368 (f $ variable cost per unit(a) s) Fixed cost per unit Total cost per unit ()) sExplanation / Answer
(1) Firstly we determine ............ (a) variable cost per unit = 27648 / 76800 Units = 0.36. Note that variable cost per unit remains same for any range of production. So values for (g) and (m) are also = 0.36
(2) Fixed cost in total will be same at any range of production ........ 30720 will be the value for (e) and (k) also.
(3) Total cost at (f) and (l) = total variable cost + total fixed cost
(4) Unit cost at (h), (i) , (n) and (o) shall be obtained by dividing the total amounts with respective units.
Cost Report Components produced 76800 96000 128000 Total costs Total variable cost 27648 34560 46080 Total fixed cost 30720 30720 30720 Total costs 58368 Cost per Unit Variable cost per unit 0.36 0.36 0.36 Fixed cost per unit 0.4 0.32 0.24 Total cost per unit 0.76 0.68 0.6