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.

Question

Business

Luca Fowler

20 November, 16:44

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.

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Herring · Answer 1

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