Reton Company is reviewing the results of itts production during tthe most recent fiscal year. Due to seasonality of the business, the volume of production fluctuates during the year. Renton would like to analyze the fixed and variable costs for purposes of estimating the budget for the upcoming fiscal year. The cost accountant provided the following data: UNITS PRODUCED TOTAL COST January 1,100 ₱12,530 February 1,200 13,260 March 1,400 14,720 April 1,500 15,450 May 1,800 17,640 June 2,100 19,830 July 2,000 19,100 August 1,900 18,370 September 1,400 14,720 October 1,500 15,450 November 1,300 13,990 December 1,700 16,910 TOTAL 18,900 191,970 Calculate the variable cost per unit and the total fixed cost using the Average method (compare the two lowest quarters).
Reton Company is reviewing the results of itts production during tthe most recent fiscal year. Due to seasonality of the business, the volume of production fluctuates during the year. Renton would like to analyze the fixed and variable costs for purposes of estimating the budget for the upcoming fiscal year. The cost accountant provided the following data:
|
UNITS PRODUCED |
TOTAL COST |
January |
1,100 |
₱12,530 |
February |
1,200 |
13,260 |
March |
1,400 |
14,720 |
April |
1,500 |
15,450 |
May |
1,800 |
17,640 |
June |
2,100 |
19,830 |
July |
2,000 |
19,100 |
August |
1,900 |
18,370 |
September |
1,400 |
14,720 |
October |
1,500 |
15,450 |
November |
1,300 |
13,990 |
December |
1,700 |
16,910 |
TOTAL |
18,900 |
191,970 |
Calculate the variable cost per unit and the total fixed cost using the Average method (compare the two lowest quarters).
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