Answer:
Fixed costs= $9,021.27
Explanation:
Giving the following information:
April 922 $ 17,912
May 983 $ 18,300
June 928 $ 17,965
July 912 $ 17,810
August 934 $ 17,994
September 919 $ 17,880
October 936 $ 18,032
November 876 $ 17,290
December 915 $ 17,838
<u>To calculate the variable and fixed component, we need to use the following formulas:</u>
<u />
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (18,300 - 17,290) / (983 - 876)
Variable cost per unit= $9.4392
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 18,300 - (9.4392*983)
Fixed costs= $9,021.27
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 17,290 - (9.4392*876)
Fixed costs= $9,021.27
Answer:
Explanation:
1. Indirect Material variable cost Per Direct Labor HR 5000000/50000=100
Indirect Material (variable) 100*75000 =7500000
Rent Fixed 6000000
Hence total Maintenace Fixed =17625000-7500000-600000= 4125000
2.
Low High Change
Cost 3250000 4125000 875000
[4125000-3250000]
Activities 50000 75000 25000
variable Portion of Maitencance cost =875000/25000= 35.00
Fixed cost=4125000-75000*35=1500000
Variable cost=35
cost formula for maintenance= 1500000+35b
3.
Indirect Material (variable) 100*70000 = 7000000
Rent Fixed 6000000
Maintenance cost = 1500000+35*70000=3950000
In economics, short run is time frame in which the quantities of quantities of some factors of production are fixed; and long run is period of time in which quantities of all the factors of production that can be varied.
<h3>
What is production?</h3>
Production is the process of mixing several inputs, both material (like metal, wood, glass, or polymers) and immaterial (like plans, or information) in order to produce output. A valuable good or service that enhances people's utility will be this output's ideal form. Production theory is the branch of economics that focuses on production; it is closely tied to the consumption theory of the economy. Utilizing the first inputs productively leads directly to the manufacturing process and results. Land, labor, and capital are regarded as the three major production components and are known as primary producer commodities or services. These essential ingredients do not substantially change during the output process or turn into a complete part of the final product.
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