Question

Munoz Companys cost and production data for two recent months included the following: Production (units) Rent Utilities Marc
b. Identify which cost is variable and which is fixed. Complete this question by entering your answers in the tabs below. Req
b. Identify which cost is variable and which is fixed. Complete this question by entering your answers in the tabs below. Req
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Answer #1

a) Calculate following

March April
Rent cost per unit 2300/200 = 11.50 2300/500 = 4.60
Utilities cost per unit 900/200 = 4.50 2250/500 = 4.50

b) Classification

Rent cost Fixed
Utilities cost variable
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