Question

Prepare calculations for the following, and explain your computations: Variable cost: The unit rate is $0.25, and the actual hours used for manufacturing are 15,000. Mixed cost: The unit rate is $0.25, actual hours are 10,000, and the fixed cost is $5,000 per month. Total cost: Use your calculations from above.

Answer 1

Answer:

Total Cost= $11,250

Explanation:

Giving the following information:

Variable cost: The unit rate is $0.25, and the actual hours used for manufacturing are 15,000.

Mixed cost: The unit rate is $0.25, actual hours are 10,000.

The fixed cost is $5,000 per month.

Variable cost and mixed cost varies according to production units, or in this case, vary according to cost pools.

Total variable cost= unitary cost rate* Actual amount of allocation base

Total mixed cost= unitary cost rate* Actual amount of allocation base

Total cost= total variable cost + total mixed cost + fixed cost

TC= 0.25*15,000 + 0.25*10,000 + 5,000= $11,250