Chrystal Company incurred the following costs for the months of January and February: Type of Cost January February. Insurance $ 7,000 $ 7,000 Utilities 2,600 3,800 Depreciation 2,000 2,000 Materials 5,000 8,000 Assume that output was 1,000 units in January and 3,000 units in February, utility cost is a mixed cost, an the fixed cost of utilities was $2,000. What was the variable rate per unit of output for utilities cost?
Chrystal Company incurred the following costs for the months of January and February: Type of Cost January February. Insurance $ 7,000 $ 7,000 Utilities 2,600 3,800 Depreciation 2,000 2,000 Materials 5,000 8,000 Assume that output was 1,000 units in January and 3,000 units in February, utility cost is a mixed cost, an the fixed cost of utilities was $2,000. What was the variable rate per unit of output for utilities cost?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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![Chrystal Company incurred the following costs for the months of January and February:
Type of Cost
January
February
Insurance
$ 7,000
$ 7,000
Utilities
2,600
3,800
Depreciation
2,000
2,000
Materials
5,000
8,000
Assume that output was 1,000 units in January and 3,000 units in February, utility cost is a mixed cost, and
the fixed cost of utilities was $2,000. What was the variable rate per unit of output for utilities cost?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff20bf9de-03a3-4ff1-b6cb-4018cf63050d%2F5ac62ff8-74ce-494e-9e61-17f1fa52806e%2F2imxdvi_processed.png&w=3840&q=75)
Transcribed Image Text:Chrystal Company incurred the following costs for the months of January and February:
Type of Cost
January
February
Insurance
$ 7,000
$ 7,000
Utilities
2,600
3,800
Depreciation
2,000
2,000
Materials
5,000
8,000
Assume that output was 1,000 units in January and 3,000 units in February, utility cost is a mixed cost, and
the fixed cost of utilities was $2,000. What was the variable rate per unit of output for utilities cost?
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