Relevant Range and Fixed Costs and Variable Costs Robo-Tech Inc. manufactures pi
ID: 2445492 • Letter: R
Question
Relevant Range and Fixed Costs and Variable Costs
Robo-Tech Inc. manufactures pistons for custom motorcycles within a relevant range of 72,000 to 114,000 pistons per year. Within this range, the following partially completed manufacturing cost schedule has been prepared.
Complete the cost schedule below. When computing the cost per unit, round to two decimal places. Round all other values to the nearest dollar.
Cost Report
Components produced
72,000
91,200
114,000
Total costs:
Total variable costs
$24,480
d. $
j. $
Total fixed costs
27,360
e.
k.
Total costs
$51,840
f. $
l. $
Cost per unit
Variable cost per unit
a. $
g. $
m. $
Fixed cost per unit
b.
h.
n.
Total cost per unit
c. $
i. $
o. $
Cost Report
Components produced
72,000
91,200
114,000
Total costs:
Total variable costs
$24,480
d. $
j. $
Total fixed costs
27,360
e.
k.
Total costs
$51,840
f. $
l. $
Cost per unit
Variable cost per unit
a. $
g. $
m. $
Fixed cost per unit
b.
h.
n.
Total cost per unit
c. $
i. $
o. $
Explanation / Answer
a.Calculation Of Variable cost per unit=24480/72000=0.34
b.Calculation Of Fixed cost per unit=27360/72000=0.38
c..Calculation Of Total cost per unit=0.34+0.38=0.72
d.Calculation Of Total Variable cost=91200*0.34=31008
e.Calculation Of Total Fixed cost=27360
(assuming Capacity is avialabe to produce till 114000)
f.Calculation Of Total cost=31008+27360=58368
g.Calculation Of Variable cost per unit=31008/91200=0.34
h Calculation Of Fixed cost per unit=27360/91200=0.30
i.Calculation Of Total cost per unit=0.34+0.30=0.64
j. Calculation Of Total Variable cost=0.34*114000=38760
k.Calculation Of Total Fixed cost=27360
(assuming Capacity is avialabe to produce till 114000)
l..Calculation Of Total cost=38760+27360=66120
m.Calculation Of Variable cost per unit=38760/114000=0.34
n.Calculation Of Fixed cost per unit=27360/114000=0.24
o..Calculation Of Total cost per unit=0.34+0.24=0..58
Cost Report Components produced 72,000 91,200 114,000 Total costs: Total variable costs 24,480 d.31008 j. 38760 Total fixed costs 27,360 e. 27360 k. 27360 Total costs 51,840 f. 58368 l. 66120 Cost per unit Variable cost per unit a. 0.34 g. 0.34 m. 0.34 Fixed cost per unit b. 0.38 h. 0.30 n. 0.24 Total cost per unit c. 0.72 i. 0.64 o. 0.58