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Zeta Manufacturing Co. recorded its highest total cost of $100,000 in May and its lowest total cost of $75,000 in February. The production volumes in May and February were 20,000 units and 10,000 units, respectively. What is the fixed cost per month?

Zeta Manufacturing Co. recorded its highest total cost of $100,000 in May and its lowest total cost of $75,000 in February. The production volumes in May and February were 20,000 units and 10,000 units, respectively. What is the fixed cost per month?

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...
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What is the fixed cost per month for this accounting question?

Zeta Manufacturing Co. recorded its highest total cost of $100,000 in May and its lowest total cost of $75,000 in February. The production volumes in May and February were 20,000 units and 10,000 units, respectively. What is the fixed cost per month?
Transcribed Image Text:Zeta Manufacturing Co. recorded its highest total cost of $100,000 in May and its lowest total cost of $75,000 in February. The production volumes in May and February were 20,000 units and 10,000 units, respectively. What is the fixed cost per month?
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