At an activity level of 9,200 machine-hours in a month,Nooner Corporation's total variable production engineering cost is $761,300 and its total fixed production engineering cost is $154,008.What would be the total production engineering cost per unit,both fixed and variable,at an activity level of 9,300 machine-hours in a month? Assume that this level of activity is within the relevant range.
A)$98.42
B)$99.49
C)$99.31
D)$98.96

Question

Quizplus · Accepted Answer

Variable cost per unit = $761,300 F1F1F1S1F1F1F10 9,200 units = $82.75 per unit
Fixed cost per unit at 9,300 units = $154,008 F1F1F1S1F1F1F10 9,300 units = $16.56 per unit
Total cost = Variable cost + Fixed cost
= $82.75 per unit + $16.56 per unit
= $99.31 per unit

At an Activity Level of 9,200 Machine-Hours in a Month,Nooner