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Data for the next 2 questions Part Q is one of the direct materials used by Andy Company for the production of its product an
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Answer #1

1.

Cost of material part Q = $8 per unit

Total variable cost = Cost per unit x Number of units

1,000 units 1,500 units 2,000 units
Total cost of material part Q 1,000 x 8 = $8,000 1,500 x 8 = $12,000 2,000 x 8 = $16,000

2.

Since material part Q is a variable cost, hence per unit cost of material part Q will not change due to changes in the number of units

1,000 units 1,500 units 2,000 units
Per unit cost of material part Q $8 $8 $8

.3.

Rent of factory building = $6,000 per month

Since Rent of factory building is a fixed cost hence it will not change due to changes in the number of units

1,000 units 1,500 units 2,000 units
Rent of factory building $6,000 $6,000 $6,000

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