Asco Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 25,000 units of production.   please see image attached.  Required:  1: If 25,000 units are produced, what is the variable cost per unit?  2: If 16,000 units are produced, what is the variable cost per unit? 3:  Comment briefly on your answers to (a) and (b).  4: If 18,000 units are produced, what are the total variable costs?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Asco Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 25,000 units of production.   please see image attached. 

Required: 

1: If 25,000 units are produced, what is the variable cost per unit? 

2: If 16,000 units are produced, what is the variable cost per unit?

3:  Comment briefly on your answers to (a) and (b). 

4: If 18,000 units are produced, what are the total variable costs?

 

 

 

 

Average Cost per unit
Direct materials
$ 13
Direct labor
8
Fixed manufacturing overhead
Variable manufacturing overhead
3
Transcribed Image Text:Average Cost per unit Direct materials $ 13 Direct labor 8 Fixed manufacturing overhead Variable manufacturing overhead 3
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