What is the variable cost per dirndl? The fixed costs of production each month?

Question

What is the variable cost per dirndl? The fixed costs of production each month?

1. Marla's Dirndls is a designer and manufacturer of traditional german dresses (dirndls) serving the upper Midwestern United States. Marla's internal accounting group wants to determine what portion of its costs are fixed, and what portion are variable. Using the cost data from 2015 in the table below, please determine: Manufacturing Production Month Costs (dirndls January February 60,000 26,00 55,00025,000 March April May June July August $ 60,000 $ 90,000 $ 95,000 S 85,000 $ 80,000 $ 80,000 40,000 50,000 38,000 $ 95,000 30,000 34,000 $ 70,000 28,000 September75,000 30,000 October 85,000 39,000 November 80,000 34,000 December 65,00027,000 a. The variable cost per dirndl produced b. The fixed cosits of production per month

Explanation / Answer

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Production Manufacturing Cost Highest Production 50000 95000 Lowest Production 25000 55000 Difference 25000 40000 Variable Cost per Unit 40000/25000 1.6 Fixed Cost: Total Cost (Units*Variable Cost)+Fixed Cost 95000 (50000*1.6)+Fixed Cost Fixed Cost 95000-80000 15000

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