Brighton Co. recorded its highest total cost of $72,000 in August, when production was 12,000 units. The lowest total cost was $51,000 in February, when production was 7,000 units. What is the fixed cost per month?

Brighton Co. recorded its highest total cost of $72,000 in August, when production was 12,000 units. The lowest total cost was $51,000 in February, when production was 7,000 units. What is the fixed cost per month?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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Question

Please explain the solution to this general accounting problem with accurate explanations.

Brighton Co. recorded its highest total
cost of $72,000 in August, when
production was 12,000 units. The
lowest total cost was $51,000 in
February, when production was 7,000
units.
What is the fixed cost per month?

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