Fanning Company\'s cost and production data for two recent months included the f

Question

Fanning Company's cost and production data for two recent months included the following 308 Production (units) Rent Utilities $1,000 $1,eee 669$1,886 Required o. Separately calculate the rental cost per unit and the utilities cost per unit for both March and April. b. Identify which cost is variable and which is fixed Complete this question by entering your answers in the tabs below. Required A Required B t for both March and April. (Round your answers to 2 Separately ca decimal places.) March April Rent cost per unit Utility cost per unit Prev 1 of 4i Next > d Windows

Explanation / Answer

March:
Rent cost per unit= cost/units
=1000/300=3.33
Utility cost per unit=600/300=2
April:
Rent cost per unit= cost/units
=1000/500=2
Utility cost per unit=1000/500=2

b)Rent cost is a fixed cost since irrespective of units cost is fixed
utility cost is variable since it varies and it is 2 per unit

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