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What is the expected total cost of the units produced if production is actually 5,100 units?

What is the expected total cost of the units produced if production is actually 5,100 units?

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Variable cost per unit is budgeted to be $8.00 and fixed cost per unit is budgeted to be $5.00 in a period when 4,000 units are produced.

Asked by Rmerklen, Last updated: Dec 21, 2024

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2 Answers

John Adney

John Adney

John Adney
John Adney

Answered Feb 08, 2017

$8*5100 units + ($5*4000 units) = $60,800
Remember that Fixed costs do NOT change with the change in level of volume activity.
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John Smith

John Smith

John Smith
John Smith

Answered Oct 29, 2016

$60,800
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