Problem 2: Identifying Cost Behavior. Mining, Inc., is trying to identify the cost behavior of the three costs shown. Cost information is provided for six months. Cost 1 Cost 2 Cost 3 Month Units Produced Total Costs Cost per Unit Total Costs Cost per Unit Total Costs Cost per Unit 1 8,000 $10,000 _____ $24,000 _____ $32,000 _____ 2 10,000 10,000 _____ 29,000 _____ 40,000 _____ 3 12,000 10,000 _____ 33,600 _____ 48,000 _____ 4 14,000 10,000 _____ 36,400 _____ 56,000 _____ 5 16,000 10,000 _____ 38,400 _____ 64,000 _____ 6 18,000 10,000 _____ 39,600 _____ 72,000 _____ Required: Calculate the cost per unit, and then identify how the cost behaves (fixed, variable, or mixed) for each of the three costs
Problem 2: Identifying Cost Behavior. Mining, Inc., is trying to identify the cost behavior of the three costs shown. Cost information is provided for six months. Cost 1 Cost 2 Cost 3 Month Units Produced Total Costs Cost per Unit Total Costs Cost per Unit Total Costs Cost per Unit 1 8,000 $10,000 _____ $24,000 _____ $32,000 _____ 2 10,000 10,000 _____ 29,000 _____ 40,000 _____ 3 12,000 10,000 _____ 33,600 _____ 48,000 _____ 4 14,000 10,000 _____ 36,400 _____ 56,000 _____ 5 16,000 10,000 _____ 38,400 _____ 64,000 _____ 6 18,000 10,000 _____ 39,600 _____ 72,000 _____ Required: Calculate the cost per unit, and then identify how the cost behaves (fixed, variable, or mixed) for each of the three costs
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 2: Identifying Cost Behavior. Mining, Inc., is trying to identify the cost behavior of the three costs shown. Cost information is provided for six months.
|
Cost 1 |
Cost 2 |
Cost 3 |
|||||
|
Month |
Units Produced |
Total Costs |
Cost per Unit |
Total Costs |
Cost per Unit |
Total Costs |
Cost per Unit |
|
1 |
8,000 |
$10,000 |
_____ |
$24,000 |
_____ |
$32,000 |
_____ |
|
2 |
10,000 |
10,000 |
_____ |
29,000 |
_____ |
40,000 |
_____ |
|
3 |
12,000 |
10,000 |
_____ |
33,600 |
_____ |
48,000 |
_____ |
|
4 |
14,000 |
10,000 |
_____ |
36,400 |
_____ |
56,000 |
_____ |
|
5 |
16,000 |
10,000 |
_____ |
38,400 |
_____ |
64,000 |
_____ |
|
6 |
18,000 |
10,000 |
_____ |
39,600 |
_____ |
72,000 |
_____ |
Required:
- Calculate the cost per unit, and then identify how the cost behaves (fixed, variable, or mixed) for each of the three costs
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