Robo-Tech Inc. manufactures pistons for custom motorcycles within a relevant ran

Question

Robo-Tech Inc. manufactures pistons for custom motorcycles within a relevant range of 100,800 to 165,600 pistons 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.

Relevant Range and Fixed Costs and Variable Costs Robo-Tech Inc. manufactures pistons for custom motorcycles within a relevant range of 100,800 to 165,600 pistons per year. Within this range, the following partially completedr Complete the cost schedule below. When computing the cost per unit, round to two decimal places. Round all other values to the nearest dollar Cost Report Components produced Total costs: Total variable costs Total fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 100,800 128,800 165,600 $41,328 46,368 $87,696 k. b. 0.

Explanation / Answer

Variable cost will remain same at units of output so while calculating remaing 2 options , units have been multiplied by Variable cost per unit of 0.41 to arrive at total variable cost.

Further fixed cost will remai same for all units of output

component produced 100800 128800 165600 Total Costs Per Unit cost Total Variable costs 41328 0.41 52808 67896 Total Fixed costs 46368 46368 46368 Total costs 87696 99176 114264 Cost per unit Variable cost per unit 0.41 0.41 0.41 Variable cost / budgeted units = 41328 / 100800 ( This will remain same for any units of output) Fixed cost per unit 0.46 0.36 0.28 Fixed cost / budgeted units ( = 46368 /128800) ( = 46368 / 165600) = 46368 / 100800 Total Cost per unit 0.87 0.77 0.69

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