Complete the cost schedule. When computing the cost per unit, round to two decim
ID: 2504734 • Letter: C
Question
Complete the cost schedule. When computing the cost per unit, round to two decimal places.
Cost Report Components produced 400,000 480,000 600,000 Total costs: Total variable costs $160,000 $ $ Total fixed costs 240,000 Total costs $400,000 $ $ Cost per Unit Variable cost per unit $ $ $ Fixed cost per unit Total cost per unit $ $ $Components produced Total costs: Total variable costs Total fixed costs Total costs.......................... Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 400,000 160,000 240,000 $400,000 (a) (b) (c) 480,000 (d) (e) (g) (h) 600,000 (k) (m) (o)
Explanation / Answer
Total Fixed Costs is constant for all output, i.e., $240,000
Variable Cost / Unit is constant for all output, i.e. 160,000/400,000 = $0.4/unit
Total Variable Cost = Variable Cost / Unit * No. of Units
Total Cost = Total Variable Cost + Total Fixed Costs
Fixed Cost / Unit = Total Fixed Cost / No. of units = 240,000 / No. of units
Total Cost / Unit = Total Cost / No. of Units or Fixed Cost / Unit + Variable Cost / Unit
Components produced400000
480000
600000 Total costs:
Total variable costs
160000
192000
240000 Total fixed costs
240000 240000 240000 Total costs
400000
432000
480000
Cost per Unit
Variable cost per unit
0.40
0.40
0.40 Fixed cost per unit
0.60 0.50 0.40 Total cost per unit
1.00 0.90 0.80