Reference no: EM133125763
Question -
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.
Required -
1. If 15,000 units are produced, what is the variable cost per unit?
2. If 12,000 units are produced, what is the variable cost per unit?
3. Comment briefly on your answers to (a) and (b).
4. If 19,000 units are produced, what are the total variable costs?
B. Refer to the following data:
Direct material used $180,000
Advertising costs $5, 000
Indirect labour $8,000
Rent on corporate office $20,000
Depreciation on factory equipment $60,000
Direct labour $30,000
Factory cleaners wages $20,000
Indirect materials $35,000
Required - Determine each of the following costs: (list the costs under each cost category when calculating the answer).
1. Product costs
2. Period costs
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