Vogel Inc. manufactures memory chips for electronic toys within a relevant range
ID: 2340850 • Letter: V
Question
Vogel Inc. manufactures memory chips for electronic toys within a relevant range of 88,400 to 142,800 memory chips per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:
Complete the cost schedule below. When computing the cost per unit, round to two decimal places. Round all other values to the nearest dollar.
Memory chips produced 88,400 109,200 142,800 Total costs: Total variable costs $33,592 d. $ j. $ Total fixed costs 37,128 e. k. Total costs $70,720 f. $ l. $ Cost per unit Variable cost per unit a. $ g. $ m. $ Fixed cost per unit b. h. n. Total cost per unit c. $ i. $ o. $Explanation / Answer
Memory chips produced 88,400 1,09,200 1,42,800 Total costs: A Total variable costs 33,592 41,496 54,264 B Total fixed costs 37,128 37,128 37,128 Total costs(A+B) 70,720 78,624 91,392 Cost per unit A Variable cost per unit 0.38 0.38 0.38 B Fixed cost per unit 0.42 0.340 0.26 Total cost per unit(A+B) 0.80 0.72 0.64 a Total variable costs 33,592 A Activity Level 88,400 B Per Unit Variable Cost 0.380 A/B b Total fixed costs 37,128 A Activity Level 88,400 B Per Unit Fixed Cost 0.42 A/B d Per Unit Variable Cost 0.38 A Activity Level 1,09,200 B Variable Cost 41496 A*B e & k Fixed Cost is equal irrelevant of Activity Level j Per Unit Variable Cost 0.38 A Activity Level 1,42,800 B Variable Cost 54264 A*B h Total fixed costs 37128 A Activity Level 1,09,200 B Per Unit Fixed Cost 0.340 A/B n Total fixed costs 37128 Activity Level 1,42,800 Per Unit Fixed Cost 0.26
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