E5.1 (LO 1), C Bonita Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown here for two levels of production. Production in Units Production Costs Direct materials Direct labor Utilities Rent Maintenance Supervisory salaries 5,000 Total Cost $8,000 9.500 2,000 4,000 800 1,000 Instructions a. Define the terms variable costs, fixed costs, and mixed costs. b. Classify each cost above as either variable, fixed, or mixed. Costs Incurred Unit Cost $1.60 1.90 0.40 0.80 0.16 0.20 10,000 Total Cost $16,000 19,000 3,300 4,000 1,400 1,000 Unit Cost $1.60 1.90 0.33 0.40 0.14 0.10

E5.1 (LO 1), C Bonita Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown here for two levels of production. Production in Units Production Costs Direct materials Direct labor Utilities Rent Maintenance Supervisory salaries 5,000 Total Cost $8,000 9.500 2,000 4,000 800 1,000 Instructions a. Define the terms variable costs, fixed costs, and mixed costs. b. Classify each cost above as either variable, fixed, or mixed. Costs Incurred Unit Cost $1.60 1.90 0.40 0.80 0.16 0.20 10,000 Total Cost $16,000 19,000 3,300 4,000 1,400 1,000 Unit Cost $1.60 1.90 0.33 0.40 0.14 0.10

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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According to following information, which of the following is the total cost function in the form of Y = F+V*X? Number of units produced is 18,000. Fixed Variable Total Cost Cost Costs Material used in Production 88,000 40,000 128,000 Labour used in Production 42,000 38,500 80,500 Production Facilities cost 37,000 167,000 108,000 275,000 29,500 66,500 TOTAL COST Select one: O a. Y = 275,000+V*108 O b. Y = 167,000+V*18 O CY = 167,000+V*6, O d.Y = 108,000+V*275 e to search F10 D Gy H i BY NT M
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