SeyChy collected the following data on manufacturing costs and activity cost drivers for two months: $\begin{array}{lcc}
&\text { November }& \text { December }\
\text { Activity level in units } & 3,000 & 7,500 \\
\text { Variable costs } & £ 7,500 & £ ? \
\text { Fixed costs } & 25,000 & ? \
\text { Mixed costs } & 11,500& 13,750\
\text { Total manufacturing costs } &? &?
\end{array}$

a.What is total variable cost per unit?
b.What is the total fixed cost?
c.What is the estimated total manufacturing cost for January if the budgeted activity in January is 6,000 units?

Question

SeyChy collected the following data on manufacturing costs and activity cost drivers for two months: $\begin{array}{lcc}
&\text { November }& \text { December }\
\text { Activity level in units } & 3,000 & 7,500 \\
\text { Variable costs } & £ 7,500 & £ ? \
\text { Fixed costs } & 25,000 & ? \
\text { Mixed costs } & 11,500& 13,750\
\text { Total manufacturing costs } &? &?
\end{array}$
 
a.What is total variable cost per unit?
b.What is the total fixed cost?
c.What is the estimated total manufacturing cost for January if the budgeted activity in January is 6,000 units?

Quizplus · Accepted Answer

The Answer of SeyChy collected the following data on manufacturing costs and activity cost drivers for two months: $\begin{array}{lcc}
&\text { November }& \text { December }\
\text { Activity level in units } & 3,000 & 7,500 \\
\text { Variable costs } & £ 7,500 & £ ? \
\text { Fixed costs } & 25,000 & ? \
\text { Mixed costs } & 11,500& 13,750\
\text { Total manufacturing costs } &? &?
\end{array}$
 
a.What is total variable cost per unit?
b.What is the total fixed cost?
c.What is the estimated total manufacturing cost for January if the budgeted activity in January is 6,000 units?

SeyChy Collected the Following Data on Manufacturing Costs and Activity