Brighton Manufacturing Co. reported a highest total cost of $120,000 in May and a lowest total cost of $100,000 in November. The company produces a single product. The production volumes in May and November were 15,000 and 10,000 units, respectively. What is the fixed cost per month?

Brighton Manufacturing Co. reported a highest total cost of $120,000 in May and a lowest total cost of $100,000 in November. The company produces a single product. The production volumes in May and November were 15,000 and 10,000 units, respectively. 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

100%

What is the fixed cost per month on these general accounting question?

Brighton Manufacturing Co. reported a highest total cost of
$120,000 in May and a lowest total cost of $100,000 in November.
The company produces a single product. The production volumes
in May and November were 15,000 and 10,000 units, respectively.
What is the fixed cost per month?

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