Explore Westonci.ca, the top Q&A platform where your questions are answered by professionals and enthusiasts alike. Join our platform to connect with experts ready to provide detailed answers to your questions in various areas. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.
Sagot :
Answer and Explanation:
The computation is given below:
As we know that
The Variable cost per unit is
= (Highest activity cost- Lowest activity cost) ÷ (Highest activity units- Lowest activity units)
Particulars Total Cost Units
Highest units 111,250.00 5,475.00
Lowest units 6,250.00 225.00
Difference 105,000.00 5,250.00
Variable cost per unit 20.00
Now
Fixed cost= Highest activity cost- (Highest units × Variable cost per unit)
= $111,250 - (5475 × 20)
= $1,750.00
We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.