Supposed company XYZ produces and sells standardized package boxes, For the month of August, the total cost of producing 120,000 units of these boxes was $308,200. The breakdown of the cost is as follows. August Sales quantity Production Cost Product parts Assembly labor Utilities Rent Building depreciation Total production cost 90,000 $96,200 76,000 34,000 58,000 44,000 $308,200 Suppose the costs of product parts and assembly labor are considered variable cost and the costs of rent and depreciation are considered fixed cost. The accounting manager at XYZ determined that 40% of utilities are fixed cost and 60% are variable cost. Based on this information, the variable cost per unit is estimated to be $ 1.61 (round to two decimal places) and the total fixed cost is estimated to be $ 115600 rose to 100,000 units, the estimated total cost (variable plus fixed) is $ rounding). (no rounding). Suppose the sales quantity (no
Supposed company XYZ produces and sells standardized package boxes, For the month of August, the total cost of producing 120,000 units of these boxes was $308,200. The breakdown of the cost is as follows. August Sales quantity Production Cost Product parts Assembly labor Utilities Rent Building depreciation Total production cost 90,000 $96,200 76,000 34,000 58,000 44,000 $308,200 Suppose the costs of product parts and assembly labor are considered variable cost and the costs of rent and depreciation are considered fixed cost. The accounting manager at XYZ determined that 40% of utilities are fixed cost and 60% are variable cost. Based on this information, the variable cost per unit is estimated to be $ 1.61 (round to two decimal places) and the total fixed cost is estimated to be $ 115600 rose to 100,000 units, the estimated total cost (variable plus fixed) is $ rounding). (no rounding). Suppose the sales quantity (no
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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
Transcribed Image Text:Supposed company XYZ produces and sells standardized package boxes, For the month of August,
the total cost of producing 120,000 units of these boxes was $308,200. The breakdown of the cost
is as follows.
August
Sales quantity
Production Cost
Product parts
Assembly labor
Utilities
Rent
Building depreciation
Total production cost
90,000
$96,200
76,000
34,000
58,000
44,000
$308,200
Suppose the costs of product parts and assembly labor are considered variable cost and the costs
of rent and depreciation are considered fixed cost. The accounting manager at XYZ determined
that 40% of utilities are fixed cost and 60% are variable cost. Based on this information, the
variable cost per unit is estimated to be $ 1.61
(round to two decimal places) and thei
total fixed cost is estimated to be $ 115600
(no rounding). Suppose the sales quantity
rose to 100,000 units, the estimated total cost (variable plus fixed) is $
rounding).
(no
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