Jared had studied extremely hard for his math test and believed he had understood the material and memorized the formulas. As he
2 answers:
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Answer:
1. True, 2. True, 3. True, 4. False, 5. False, 6. True, 7. True, 8. True, 9. False, 10. False, 11. False, 12. False
Explanation:
1. The variable manufacturing cost will remain same as cost behavior patterns remain unchanged.
2. Total fixed cost increases as level of production increases.
10000 units: 10050 units
Variable cost= (70x10000) x40%=$280000 (70x10050)x40%=$281400
Fixed Cost-= 700000-280000= $420000 703500-281400=$422100
3. Increase in level of production will cause the total manufacturing cost to increase.
4. At 10000 units, = 42/unit
10050 units, = $42/unit
5. The total variable manufacturing cost will be greater than last month
At 10000 = (70x10000) x 40% = $280000
At 10050 = (70x10050) x 40% = $281400
6. At 10000 = 70 x 10000 = $700000
At 10050 = 70 x 10050= $703500
7. Cost behavior remain unchanged
70 x 40% = $28
8. Total manufacturing cost = total manufacturing variable + total manufacturing fixed cost
703500 = 281400 - Fixed cost
Fixed cost = $ 422100
9. Total manufacturing cost = 70 x 10050 = $703500
10. = $42/ unit
11. Increase in level of production will increase total manufacturing variable cost
(70x10000) x 40% = 280000
(70x10050) x 40% = 2814000
12. Cost behavior pattern unchanged
= $70