Components produced. . . . . . . . . . . . . . . . . 400,000 480,000 600,000
Total costs:
Total variable costs. . . . . . . . . . . . . . . . . . $ 160,000 (d) (j)
Total fixed costs. . . . . . . . . . . . . . . . . . . . . 240,000 (e) (k)
Total costs. . . . . . . . . . . . . . . . . . . . . . . . . . . $400,000 (f) (l)
Cost per unit:
Variable cost per unit. . . . . . . . . . . . . . . . (a) (g) (m)
Fixed cost per unit. . . . . . . . . . . . . . . . . . . (b) (h) (n)
Total cost per unit. . . . . . . . . . . . . . . . . . . (c) (i) (o)
Complete the cost schedule, identifying each cost by the appropriate letter (a) through (o).
Answer:
Components produced…………… 400,000 480,000 600,000
Total costs:
Total variable costs………… $160,000 (d) $192,000 (j) $240,000
Total fixed costs……………… 240,000 (e) 240,000 (k) 240,000
Total costs……………………… $400,000 (f) $432,000 (l) $480,000
Cost per unit:
Variable cost per unit…………(a) $ 0.40 (g) $ 0.40 (m) $ 0.40
Fixed cost per unit…………… (b) 0.60 (h) 0.50 (n) 0.40
Total cost per unit………………(c) $ 1.00 (i) $ 0.90 (o) $ 0.80
Supporting calculations:
a. $0.40 ($160,000 ÷ 400,000 units)
b. $0.60 ($240,000 ÷ 400,000 units)
d. $192,000 ($0.40 × 480,000)
e. $240,000 (fixed costs do not change with volume)
g. $0.40 ($192,000 ÷ 480,000 units; variable costs per unit do not change with changes in volume)
h. $0.50 ($240,000 ÷ 480,000 units)
j. $240,000 ($0.40 × 600,000 units)
k. $240,000 (fixed costs do not change with volume)
m. $0.40 ($240,000 ÷ 600,000 units; variable costs per unit do not change with changes in volume)
n. $0.40 ($240,000 ÷ 600,000 units)