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Calculate variable costs per unit, variable cost per unit for utilities and variable cost per unit for maintenance. Exclude mixed costs in the calculation for variable cost per unit. (Round answers to 2 decimal places e.g. 2.25.) Variable cost per unit (Exclude variable cost for utilities and maintenance) $ Variable cost per unit for utilities $ Variable cost per unit for maintenance

Sagot :

Based on the costs given for PCB Corporation, the Variable costs per unit are:

  • Variable cost per unit = $10
  • Variable cost per unit for utilities = $0.60
  • Variable cost per unit for maintenance = $0.30.

What are the variable costs per unit?

The variable cost per unit is:

= (Direct material + Direct labor + Indirect labor) / Units produced

= (7,500 + 18,000 + 4,500) / 3,000

= $10 per unit

The variable cost per unit for utilities is:

= (Total cost of utilities - Fixed portion of utilities cost) / Units produced

= (2,100 - 300) / 3,000

= $0.60

The variable cost per unit for maintenance is:

=  (Total cost of maintenance - Fixed portion of maintenance cost) / Units produced

= (1,100 - 200) / 3,000

= $0.30

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