amount of variable costs related to units sold
If you don’t understand why a particular cost is classified the way it is, reread the section of the chapter. discussing the particular cost term. The terms variable cost and fixed cost refer to how costs behave with respect to. the number of tables produced in a year. Solution to Review Problem 1. Variable cost = Units x Variable cost per unit Variable cost = 1,200 x 92.60 Variable cost = 111,120. The unit variable cost remains at 92.60 but the total variable cost is expected to rise form 92,600 to 111,120. 1-If 14,500 units are sold, what is the total amount of variable costs related to the units sold? 2-If 10,000 units are produced, what is the average fixed manufacturing cost per unit produced? 3-If 14,500 units are produced, what is the average fixed manufacturing cost per unit produced? The company spends $250,000 per year to advertise its products. 8. Salespersons are paid a commission of $30 for each table sold. 9. Instead of producing the tables, the company could rent its factory space for $50,000 per year. Required: Classify these costs according to the various cost terms used in the chapter. Carefully study the classification of. each cost. 4-If 10,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? 5-If 14,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? Get Answer. Variable Cost per Unit. If the number of units produced in the period is 1,000 then the variable cost per unit is calculated as follows. Variable cost/unit = Variable cost / Number of units Variable cost/unit = 92,600 / 1,000 Variable cost/unit = 92.60. The total variable costs of the business are calculated as follows. Variable cost = Direct labor + 80% Utilities + Materials Variable cost = 40,00 + 80% x 22,000 + 35,000 Variable cost = 92,600. If the number of units produced in the period is 1,000 then the variable cost per unit is calculated as follows. 1-If 14,500 units are sold, what is the total amount of variable costs related to the units sold? 2-If 10,000 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.) VI VII VIII White Yellow Green 1. b c b 2. c b c 3. b b d 4. d b b 5. c d c 6. b c c 7. c d a 8. a c c 9. d c b 10. c c c 11. c c a 12. a b a 13. c c c 14. c a a 15. Unit 1 Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces. Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its unit costs are as follows: Amount per unit. Direct Material - $6.00.
If the number of units produced in the period is 1,000 then the variable cost per unit is calculated as follows. Variable cost/unit = Variable cost / Number of units Variable cost/unit = 92,600 / 1,000 Variable cost/unit = 92.60.