Which of the following costs will not change as output changes?
(i) Marginal cost
(ii) Average fixed cost
(iii) Average variable cost
(iv) Total variable cost
(v) Total fixed cost
Related questions
For each level of output, calculate the variable cost(VC). For each level of output except zero output,calculate the average variable cost (AVC), average totalcost (ATC), and average fixed cost (AFC).
Qty of boats | Total Cost | Variable Costs a. | Average Variable Costs b. | Average Total Costs c. | Average Fixed Cost d. |
0 | $450,000 | - | - | - | - |
1 | 490,000 | ||||
2 | 510,000 | ||||
3 | 520,000 | ||||
4 | 540,000 | ||||
5 | 570,000 | ||||
6 | 610,000 | ||||
7 | 670,000 | ||||
8 | 750,000 | ||||
9 | 870,000 |
What is the minimum-cost output?
Kubin Companyâs relevant range of production is 21,000 to 25,000 units. When it produces and sells 23,000 units, its average costs per unit are as follows:
| Average Cost per Unit | ||
| Direct materials | $ | 8.10 |
| Direct labor | $ | 5.10 |
| Variable manufacturing overhead | $ | 2.60 |
| Fixed manufacturing overhead | $ | 6.10 |
| Fixed selling expense | $ | 4.60 |
| Fixed administrative expense | $ | 3.60 |
| Sales commissions | $ | 2.10 |
| Variable administrative expense | $ | 1.60 |
2. Assume the cost object is the Manufacturing Department and that its total output is 23,000 units.
a. How much total manufacturing cost is directly traceable to the Manufacturing Department?
b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department?
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Munchak Companyâs relevant range of production is 9,000-11,000 units. Last month the company produced 10,000 units. Its total manufacturing cost per unit produced was $70. At this level of activity the companyâs variable manufacturing costs are 40% of its total manufacturing costs.
Required:
Assume that next month Munchak produces 10,050 units and that its cost behavior patterns remain unchanged. Label each of the following statements as true or false with respect to next month.
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