Answered: A company had the following costs at…

A company had the following costs at four different levels of activity: Number of units 1250 2000 2590 3061 Cost GHS 4875 6500 7698 8581 The best estimate of variable cost per unit is:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A company had the following costs at four different levels of activity: Number of units 1250 2000 2590 3061 Cost GHS 4875
6500 7698 8581 The best estimate of variable cost per unit is:
O A. GHS 2.17
O B. GHS 2.03
OC. GHS 2.05
D. GHS 2.10

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1. Providence Corporation produces a single product and has the following cost structure: Number of units produced each year Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense lanolevil subivibr The unit product cost under variable costing is: 7,000 mos i h $78 $89 $6 $3 $532,000 $574,000
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A manufacturer reports the following. Compute contribution margin. Sales Variable cost of goods sold Fixed overhead Variable selling and administrative costs Fixed selling and administrative costs Multiple Choice $800,000 $642,000 $762,000 $524,000 $ 1,218,000 418,000 338,000 158,000 118,000
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Required information [The following information applies to the questions displayed below.] Felix & Company reports the following information. Period Units Produced 0 1 2 9 10 408 800 1,200 1,600 2,000 2,400 2,800 3,200 3,600 Total Costs $ 2,545 Total cost at the high point Variable costs at the high point Volume at the high point Variable cost per unit Total variable costs at the high point Total fixed costs 3,265 3,985 4,705 5,425 6,145 6,865 7,585 (1) Use the high-low method to estimate the fixed and variable components of total costs. (2) Estimate total costs if 3,000 units are produced. High-Low method- Calculation of variable cost per unit 8,305 9,025 Total cost at the low point Variable costs at the low point Volume at the low point Variable cost per unit Total variable costs at the low point Total fixed costs (2) Estimated cost if 3,000 units are produced: Estimated total cost High-Low method-Calculation of fixed costs 0