Total production costs of prior periods for Premium Company are listed below. Assume that the same cost behavior patterns can be extended linearly over the range of 3,000 to 35,000 units and that the cost driver for each cost is the number of units produced. At 3000 Level of Production: Cost X 23700 and Cost Y 47280 At 9000 Level of Production: Cost X 52680 and Cost Y 141840 At 16000 Level of Production: Cost X 86490 and Cost Y 252160 At 35000 Level of Production: Cost X 178260 and Cost Y 551600 What is the total average cost per unit at a production level of 8.000 units? Answer must

Total production costs of prior periods for Premium Company are listed below. Assume that the same cost behavior patterns can be extended linearly over the range of 3,000 to 35,000 units and that the cost driver for each cost is the number of units produced. At 3000 Level of Production: Cost X 23700 and Cost Y 47280 At 9000 Level of Production: Cost X 52680 and Cost Y 141840 At 16000 Level of Production: Cost X 86490 and Cost Y 252160 At 35000 Level of Production: Cost X 178260 and Cost Y 551600 What is the total average cost per unit at a production level of 8.000 units? Answer must

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Description: Total production costs of prior periods forPremium Company are listed below. Assumethat the same cost behavior patterns can beextended linearly over the range of 3,000 to35,000 units and that the cost driver for eachcost is the number of units produ

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

Problem 4BE

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Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 25,000 units of production. Using the costs data from Rose Company, answer the following questions: A. If 15,000 units are produced, what is the variable cost per unit? B. If 28,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs? D. If 29,000 units are produced, what are the total variable costs? E. If 17,000 units are produced, what are the total manufacturing overhead costs incurred? F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred? G. If 30,000 units are produced, what are the per unit manufacturing overhead costs incurred? H. If 15,000 units are produced, what are the per unit manufacturing overhead costs incurred?
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What is the correct choice? Datamatix Company has gathered the following data: Unit Sales Price Unit Variable Costs Unit Sales Product 1 $18.00 $10.00 24,500 Product 2 27.00 17.00 17,500 Product 3 35.00 28.00 28,000 Fixed costs are $233,280. The weighted-average breakeven point is a. 34,500 units. b. 28,800 units. c. 25,200 units. d. 29,900 units.