Cost Behavior cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled...
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Cost Behavior cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. Total Total Total Machine Units Lumber Utilities Depreciation Produced Cost Cost Cost 12,000 shelves $120,000 $14,800 $135,000 24,000 shelves 240,000 28,600 135,000 48,000 shelves 480,000 56,200 135,000 60,000 shelves 600,000 70,000 135,000 1. Determine whether the costs in the table are variable, fixed, mixed, or none of these. Lumber Variable Cost Utilities Mixed Cost Depreciation Fixed Cost 5. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is gero, enter "0". Recall that, for N = Number of Units Produced, Total Costs = (Variable Cost Per Unit X N) + Fixed cost. Complete the following table with your answers. Round variable portion of cost (per unit) answers to two decimal places. Fixed Portion Variable Portion Cost of Cost of Cost (per Unit) Lumber 0 10 Utilities Depreciation
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