At an activity level of 8,500 machine hours in a month, Gayle Corporation's total variable production engineering cost is $765,500 and its total fixed. production engineering cost is $210,000. Assume that this level of activity is within the relevant range. Required: What would be the total production engineering cost per unit, both fixed and variable, at an activity level of 8,600 machine hours in a month?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 8EA: Suppose that a company has fixed costs of $18 per unit and variable costs $9 per unit when 15,000...
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At an activity level of 8,500 machine hours in a month,
Gayle Corporation's total variable production
engineering cost is $765,500 and its total fixed.
production engineering cost is $210,000. Assume that
this level of activity is within the relevant range.
Required:
What would be the total production engineering cost
per unit, both fixed and variable, at an activity level of
8,600 machine hours in a month?
Transcribed Image Text:At an activity level of 8,500 machine hours in a month, Gayle Corporation's total variable production engineering cost is $765,500 and its total fixed. production engineering cost is $210,000. Assume that this level of activity is within the relevant range. Required: What would be the total production engineering cost per unit, both fixed and variable, at an activity level of 8,600 machine hours in a month?
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