Question

Vogel Inc. manufactures memory chips for electronic toys within a relevant range of 100,800 to 165,600 memory chips per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:

Components produced	100,800	128,800	165,600
Total costs:
Total variable costs . . . . . . . . .	$41,328	(d)	(j)
Total fixed costs . . . . . . . . . . . .	46,368	(e)	(k)
Total costs . . . . . . . . . . . . . . . . .	$87,696	(f)	(l)
Cost per unit:
Variable cost per unit . . . . . . .	(a)	(g)	(m)
Fixed cost per unit . . . . . . . . . .	(b)	(h)	(n)
Total cost per unit . . . . . . . . . .	(c)	(i)	(o)

Complete the cost schedule below. When computing the cost per unit, round to two decimal places. Round all other values to the nearest dollar.

Cost Report
Components produced		100,800		128,800		165,600
Total costs:
Total variable costs		$41,328	(d)	$	(j)	$
Total fixed costs		46,368	(e)		(k)
Total costs		$87,696	(f)	$	(l)	$
Cost per Unit
Variable cost per unit	(a)	$	(g)	$	(m)	$
Fixed cost per unit	(b)		(h)		(n)
Total cost per unit	(c)	$	(i)	$	(o)	$

Answer 1

Components produced	100,800	128,800	165,600
Total costs:
Total variable costs	$41,328	(d) $52,808 (128,800 x $0.41)	(j) $67,896 (165,600 x $0.41)
Total fixed costs	$46,368	(e) $46,368	(k) $46,368	Will be Fixed
Total costs	$87,696	(f) $99,176	(l) $114,264
Cost per unit:
Variable cost per unit .	(a)$0.41 ($41,328 / 100,800)	(g) $0.41	(m) $0.41	Will be Fixed
Fixed cost per unit	(b) $0.46 ($46,368 / 100,800)	(h) $0.36 ($46,368 / 128,800)	(n) $0.28 ($46,368 / 165,600)
Total cost per unit	(c )$0.87 ($87,696 / 100,800)	(i) $0.77 ($99,176 / 128,800)	(o) $0.69 ($114,264 / 165,600)