George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the company’s products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks:   Week Units Total Etching Cost 1   4     $ 18     2   3       17     3   8       25     4   6       20     5   7       24     6   2       16         30     $ 120         For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week.   Exercise 5A-5 Part 3 (Static) 3. If the company processes five units next week, what would be the expected total etching cost?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the company’s products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks:

 

Week Units Total Etching Cost
1   4     $ 18    
2   3       17    
3   8       25    
4   6       20    
5   7       24    
6   2       16    
    30     $ 120    
 

 

For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week.

 

Exercise 5A-5 Part 3 (Static)

3. If the company processes five units next week, what would be the expected total etching cost?

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