At an activity level of 6,200 machine hours in a month, Summit Manufacturing's total variable production overhead cost is $558,000, and its total fixed production overhead cost is $186,500. Assume that this level of activity is within the relevant range. What would be the total production overhead cost per unit, both fixed and variable, at an activity level of 6,400 machine hours in a month?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...
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At an activity level of 6,200 machine hours in a month, Summit
Manufacturing's total variable production overhead cost is $558,000, and its
total fixed production overhead cost is $186,500. Assume that this level of
activity is within the relevant range.
What would be the total production overhead cost per unit, both fixed and
variable, at an activity level of 6,400 machine hours in a month?
Transcribed Image Text:At an activity level of 6,200 machine hours in a month, Summit Manufacturing's total variable production overhead cost is $558,000, and its total fixed production overhead cost is $186,500. Assume that this level of activity is within the relevant range. What would be the total production overhead cost per unit, both fixed and variable, at an activity level of 6,400 machine hours in a month?
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