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Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall
Edition 11ISBN: 978-1259535314Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall
Edition 11ISBN: 978-1259535314 Exercise 9
Estimating costs based on behavior patterns The following information provides the amount of cost incurred in August for the cost items indicated. During August, 8,000 units of the firm's single product were manufactured.
Required:
a. How much cost would you expect to be incurred for each of these items during September when 9,600 units of the product are planned for production?
b. Calculate the average total cost per unit for the 8,000 units manufactured in August. Explain why this figure would not be useful to a manager interested in predicting the cost of producing 9,600 units in September.
Required:
a. How much cost would you expect to be incurred for each of these items during September when 9,600 units of the product are planned for production?
b. Calculate the average total cost per unit for the 8,000 units manufactured in August. Explain why this figure would not be useful to a manager interested in predicting the cost of producing 9,600 units in September.
Explanation
Verified
Verified
a.
Total costs of a product include var...
Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall
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