Exercise 18-6 (Part Level Submission) PCB Corporation manufactures a single prod

Question

Exercise 18-6 (Part Level Submission) PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,123 units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $312 and $208, respectively uction in Units 3,123 Direct materials Direct labor Utilities Property taxes Indirect labor Supervisory salaries Maintenance Depreciation $7,808 18,738 2,186 1,041 4,685 1,978 1,145 2,498 (b1) Calculate variable costs per unit, variable cost per unit for utilities and variable cost per unit for maintenance. Exclude mixed costs in the calculation for variable cost per unit. (Round answers to 2 decimal places e.g. 2.25.) Variable cost per unit (Exclude variable cost for utilities and maintenance) Variable cost per unit for utilities Variable cost per unit for maintenance

Explanation / Answer

b) Variable cost per unit = (7808+18738)/3123 = 8.50 per unit

Variable cost per unit for utilities = (2186-312)/3123 = 0.60 per unit

Variable cost per unit for maintenance = (1145-208)/3123 = 0.30 per unit

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