Laser Tex Inc. manufactures low-end computer components within arelevant range o
ID: 2457784 • Letter: L
Question
Laser Tex Inc. manufactures low-end computer components within arelevant range of 100,000 to 140,000 disks per year. Withinthis range, the following partially completed manufacturing costschedule has been prepared:
CDsproduced 100,000 120,000 140,000
Total Costs:
Total variablecosts 40,000 (d) (j)
Total fixedcosts 84,000 (e) (k)
Totalcosts 124,000 (f) (l)
Cost per unit:
Variable cost perunit (a) (g) (m)
Fixed cost perunit (b) (h) (n)
Total cost perunit (c) (i) (o)
Complete the cost schedule, identifying each cost by theappropriate letter (a) through (o).
Note: a. $0.40
Explanation / Answer
CD's produced
1,00,000
1,20,000
1,40,000
Total Variable cost
40,000
48,000
56,000
Total Fixed cost
84,000
84,000
84,000
Total cost
1,24,000
132,000
140,000
Cost per unit:
Variable cost per unit
0.4
0.4
0.4
Fixed cost per unit
0.8
0.7
0.6
Total cost per unit
1.24
1.1
1
CALCULATION:
Variable cost per unit =
Total variable cost / No. of disk
Fixed cost per unit =
Total Fixed cost / No. of disk
Total cost per unit =
Total cost / No. of disk
For (d) Total variable cost = variable cost perunit X no. of disk
0.4 X 1,20,000
48,000
Same as j
Fixed cost is same.
CD's produced
1,00,000
1,20,000
1,40,000
Total Variable cost
40,000
48,000
56,000
Total Fixed cost
84,000
84,000
84,000
Total cost
1,24,000
132,000
140,000
Cost per unit:
Variable cost per unit
0.4
0.4
0.4
Fixed cost per unit
0.8
0.7
0.6
Total cost per unit
1.24
1.1
1
CALCULATION:
Variable cost per unit =
Total variable cost / No. of disk
Fixed cost per unit =
Total Fixed cost / No. of disk
Total cost per unit =
Total cost / No. of disk
For (d) Total variable cost = variable cost perunit X no. of disk
0.4 X 1,20,000
48,000
Same as j
Fixed cost is same.
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