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Nimfa-mama [501]
3 years ago
10

Coleman Manufacturing Co.'s static budget at 10,000 units of production includes $40,000 for direct labor and $6,000 for electri

c power (which is considered variable and not mixed). Total fixed costs are $20,000. At 12,000 units of production, a flexible budget would showa.variable and fixed costs totaling $120,400.
b.variable costs of $66,000 and $20,000 of fixed costs.
c.variable costs of $92,400 and $20,000 of fixed costs.
d.variable costs of $92,400 and $28,000 of fixed costs.
Business
1 answer:
Masteriza [31]3 years ago
4 0

Answer:

Let's first compute the total amount of fixed and variable costs at 10,000 units

first compute the variable cost per unit.

variable cost per unit = total variable costs / total units

= 40,000 + 6,000 / 10,000

= 46,000 / 10,000

= 4.6 per unit

therefore the variable cost per unit is $4.60

Now for the fixed cost at 12,000 units

Variable costs = $55,200

12,000 units x 4,60 per unit

Fixed costs = 20,000

<em>Therefore the variable costs are 55,200 and the fixed costs are 20,000 </em>

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