FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- a) Hyundai Company has a relevant range of production between 10,000 and 20,000 units. The following
cost data represents average variable costs per unit for 15,000 units of production.
Average Cost per unit
Direct materials $12
Direct labor 10
Variable manufacturing
Fixed manufacturing overhead 8
Required:
- If 15,000 units are produced, what is the variable cost per unit?
- If 12,000 units are produced, what is the variable cost per unit?
- Comment briefly on your answers to (a) and (b).
- If 19,000 units are produced, what are the total variable costs?
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