A juice manufacturer had the following maintenance costs: Month 1: 85,000 units processed with maintenance costs of $155,000 ⚫ Month 2: 65,000 units processed with maintenance costs of $125,000 What is the variable cost per unit processed? a. $1.50 b. $1.82 c. $1.92 d. $1.25

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...
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A juice manufacturer had the following maintenance costs:
Month 1: 85,000 units processed with maintenance costs of
$155,000
⚫ Month 2: 65,000 units processed with maintenance costs of
$125,000
What is the variable cost per unit processed?
a. $1.50
b. $1.82
c. $1.92
d. $1.25
Transcribed Image Text:A juice manufacturer had the following maintenance costs: Month 1: 85,000 units processed with maintenance costs of $155,000 ⚫ Month 2: 65,000 units processed with maintenance costs of $125,000 What is the variable cost per unit processed? a. $1.50 b. $1.82 c. $1.92 d. $1.25
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