QUESTION: At an activity level of 10,000 units, variable costs totaled $35,000 and fixed costs totaled $20,800. If 16,000 units are produced and this activity is within the relevant range, then: a. total unit cost would equal $4.80. b. total costs would equal $55,800. c. fixed cost per unit would equal $558. d. total cost would equal $89,280.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
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QUESTION:
At an activity level of 10,000 units, variable costs totaled
$35,000 and fixed costs totaled $20,800. If 16,000 units are
produced and this activity is within the relevant range, then:
a. total unit cost would equal $4.80.
b. total costs would equal $55,800.
c. fixed cost per unit would equal $558.
d. total cost would equal $89,280.
Transcribed Image Text:QUESTION: At an activity level of 10,000 units, variable costs totaled $35,000 and fixed costs totaled $20,800. If 16,000 units are produced and this activity is within the relevant range, then: a. total unit cost would equal $4.80. b. total costs would equal $55,800. c. fixed cost per unit would equal $558. d. total cost would equal $89,280.
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