Calculate the unit variable costs within the relevant range. (Round answer to 2 decimal places eg. 2.25.)(d)Unit variable cost for direct materialse Textbook and Media$Indicate the fixed cost within the relevant range.Fixed cost $2.40per unit Curiumber Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range oroutput as follows.Outputin Units1,0002,0003,0004,0005,0006,0007,0008,0009,000RentCost11.000$5,2905,2908,4648,4648,4648,464.8,4648.46410.58010,000 10,58010.580DirectMaterials$4,2007,2007,2009,600.12,00014,40016.80019,20030.99937,03046.552

High low method is a method used for cost estimation in the business. Variable costs are those costs…

Calculate the unit variable costs within the relevant range. (Round answer to 2 decimal places eg. 2.2. (d) Unit variable cost for direct materials eTextbook and Media Indicate the fixed cost within the relevant range. Fixed cost SA $ 2.40 per unit

Calculate the unit variable costs within the relevant range. (Round answer to 2 decimal places eg. 2.2. (d) Unit variable cost for direct materials eTextbook and Media Indicate the fixed cost within the relevant range. Fixed cost SA $ 2.40 per unit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Calculate the unit variable costs within the relevant range. (Round answer to 2 decimal places eg. 2.25.)
(d)
Unit variable cost for direct materials
e Textbook and Media
$
Indicate the fixed cost within the relevant range.
Fixed cost $
2.40
per unit

Curiumber Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range or
output as follows.
Output
in Units
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Rent
Cost
11.000
$5,290
5,290
8,464
8,464
8,464
8,464.
8,464
8.464
10.580
10,000 10,580
10.580
Direct
Materials
$4,200
7,200
7,200
9,600.
12,000
14,400
16.800
19,200
30.999
37,030
46.552

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