Noor Company provided data for the total cost of two levels of monthly production volume. The company produces one product. Sales volume (units) direct material 4000 1000 48000$ $12000 5000$ 84000$ 240004 direct employment additional industrial 20000$ costs 9000$ 6000$ Total marketing costs 2000$ 2000$ total administrative costs Required : 1 Calculate the initial costs at the level of 4000 units 2_ Calculate period costs at the level of 1000 units 3 Using the upper bound method, calculate the unit variable cost component of the additional industrial costs and the fixed cost component of the additional industrial costs. 4 What is the total cost when the company produces 2500 units
Noor Company provided data for the total cost of two levels of monthly production volume. The company produces one product. Sales volume (units) direct material 4000 1000 48000$ $12000 5000$ 84000$ 240004 direct employment additional industrial 20000$ costs 9000$ 6000$ Total marketing costs 2000$ 2000$ total administrative costs Required : 1 Calculate the initial costs at the level of 4000 units 2_ Calculate period costs at the level of 1000 units 3 Using the upper bound method, calculate the unit variable cost component of the additional industrial costs and the fixed cost component of the additional industrial costs. 4 What is the total cost when the company produces 2500 units
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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