At an activity level of 10,000 units, variable costs totaled $35,000 and fixed costs totaled $20,800. If 16,000 units are produced and this activity is within the relevant range, then: a. total unit cost would equal $4.80. b. total costs would equal $55,800. c. fixed cost per unit would equal $558. d. total cost would equal $89,280.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 8EB: Suppose that a company has fixed costs of $11 per unit and variable costs $6 per unit when 11,000...
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At an activity level solve this question solution accounting

At an activity level of 10,000 units, variable costs totaled
$35,000 and fixed costs totaled $20,800. If 16,000 units
are produced and this activity is within the relevant range,
then:
a. total unit cost would equal $4.80.
b. total costs would equal $55,800.
c. fixed cost per unit would equal $558.
d. total cost would equal $89,280.
Transcribed Image Text:At an activity level of 10,000 units, variable costs totaled $35,000 and fixed costs totaled $20,800. If 16,000 units are produced and this activity is within the relevant range, then: a. total unit cost would equal $4.80. b. total costs would equal $55,800. c. fixed cost per unit would equal $558. d. total cost would equal $89,280.
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