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olga2289 [7]
3 years ago
11

Wu Company incurred $97,200 of fixed cost and $111,600 of variable cost when 3,100 units of product were made and sold. If the c

ompany's volume increases to 3,600 units (within relevant range), the total cost per unit will be:
Business
1 answer:
ELEN [110]3 years ago
8 0

The total per cost unit would be 63$ per unit.

Explanation:

Fixed costs are the cost that remains fixed throughout the production cycle whereas the variable cost changes according to the production process.

Hence for the given process while the variable cost would change for producing 3600 units, the fixed cost would remain the same.

The variable cost of producing 3100 units= 111,600$

Variable cost of producing 1 unit= 36$

The cost needed to produce 3600 similar units=129,600$

Fixed cost= 97,200$

Total cost of production= 129,600$+97,200$= 226,800$

Per unit cost of production= Total cost/total no of units produced

=226,800/3600

=63$

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3 years ago
Flipco signed a 10​-year note payable on January​ 1, 2018​, of $ 800, 000. The note requires annual principal payments each Dece
kirill115 [55]

Answer:

A. a debit to Interest Expense for $ 36, 000

Explanation:

Based on the information given we were told that Flipco has note payable on January​ 1, 2018, of the amount of $800,000 and on December 31 we were told that the loan requires annual principal payments of the amount of $80,000 in addition with 5​% interest. This means that the Journal entry to record the transaction on December​ 31, 2019​ will includes a Debit to interest expense for $36,000 calculated as :

Interest expense= $800,000-$80,000

Interest expense=( $720,000* 5%* 12/12)

Interest expense =$36,000

Therefore the Journal entry to record the annual payment on December​ 31, 2019​ will includes :

A Debit to interest expense for $36,000

7 0
3 years ago
A company undergoing _____ completely redesigns its work processes, hoping for dramatic improvements in the efficiency and effec
netineya [11]

Answer: Business process re-engineering

Explanation:

Business Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed” – Michael Hammer and James Champy

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5 0
3 years ago
Bennett Company’s high and low level of activity last year was 150,000 units produced in June and 50,000 units produced in Janua
yKpoI14uk [10]

Answer:

Total cost= $72,000

Explanation:

Giving the following information:

Bennett Company’s high and low level of activity last year was 150,000 units produced in June and 50,000 units produced in January. Machine maintenance costs were $104,000 in June and $40,000 in January.

We need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (104,000 - 40,000) / (150,000 - 50,000)= $0.64 per unit

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

FC= 104,000 - (0.64*150,000)= 8,000

Fixed costs= LAC - (Variable cost per unit* LAU)

FC= 40,000 - (0.64*50,000)= 8,000

Now, we can calculate the cost of 100,000 units:

Total cost= o.64*100,000 + 8,000= $72,000

5 0
3 years ago
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