Production in units per month 3,000 9,000 16,000 P86,490 35,000 Cost X P23,700 P52,680 P178,260 Cost Y 47,280 141,840 252,160 551,600 What is the average cost per unit at a production level of 8,000 units for cost X?

Production in units per month 3,000 9,000 16,000 P86,490 35,000 Cost X P23,700 P52,680 P178,260 Cost Y 47,280 141,840 252,160 551,600 What is the average cost per unit at a production level of 8,000 units for cost X?

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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Question

Total production costs of prior periods for a company are listed as follows. Assume that the same cost behavior patterns can be extended linearly over the range of 3,000 to 35,000 units and that the cost driver for each cost is the number of units produced.

Production in units per month
3,000
9,000
16,000
35,000
Cost X
P23,700
P52,680
P86,490
P178,260
Cost Y
47,280
141,840
252,160
551,600
What is the average cost per unit at a production level of 8,000 units for cost X?

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