Answer:
Total Variable cost is $9 per unit
Varibale cost of Utilities is $0.5 per unit
Varibale cost of Maintainance $0.3 per unit
Explanation:
First calculate Fixed and Variable cost separately.
Fixed costs = Property taxes + Supervisory Salaries + Depreciation + Fixed utilities cost + Fixed Maintenance costs
Fixed Cost = $1,280 + 2,304 + $3,072 + $384 + $256 = $7,296
Variable costs to produce 3,840 units = Direct materials + Direct labor + Indirect labor
Variable costs to produce 3,840 units = $9,600 + $19,200 + $5,760 = $34,560
Variable cost per unit = Total Variable cost / Number of units
Variable cost per unit = $34,560 / 3,840 = $9 per unit
Variable cost portion of mixed cost= Total cost – Fixed portion
Utilities
Variable cost = $2,304 – $384 = $1,920
Variable cost per unit = $1,920 / 3,840 units = $0.5 per unit
Maintainance
Variable cost = $1,408 – $256 = $1,152
Variable cost per unit = $1,152 / 3,840 units = $0.3 per unit
