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    01 Activity 1 ARG COSTING AND PRICING

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    John Ramirez
    The document discusses variable and fixed costs at different levels of activity. It shows that as activity increases from the lowest to highest level, variable costs per unit increase from $21.61. Variable costs at the highest level of activity are $64,833.33. Fixed costs remain the same at $5,166.67 regardless of activity level.

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    01 Activity 1 ARG COSTING AND PRICING

    Uploaded by

    John Ramirez
    27 views2 pages
    The document discusses variable and fixed costs at different levels of activity. It shows that as activity increases from the lowest to highest level, variable costs per unit increase from $21.61. Variable costs at the highest level of activity are $64,833.33. Fixed costs remain the same at $5,166.67 regardless of activity level.

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    01-Activity-1-ARG-COSTING-AND-PRICING

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    The document discusses variable and fixed costs at different levels of activity. It shows that as activity increases from the lowest to highest level, variable costs per unit increase from $21.61. Variable costs at the highest level of activity are $64,833.33. Fixed costs remain the same at $5,166.67 regardless of activity level.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    27 views2 pages

    01 Activity 1 ARG COSTING AND PRICING

    Uploaded by

    John Ramirez
    The document discusses variable and fixed costs at different levels of activity. It shows that as activity increases from the lowest to highest level, variable costs per unit increase from $21.61. Variable costs at the highest level of activity are $64,833.33. Fixed costs remain the same at $5,166.67 regardless of activity level.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 2

    A.

    CHANGE IN COST AND CHANG

    B. VARIABLE COST (VC) PER UNIT

    C. VARIABLE COST AT THE HIGHEST

    VARIABLE COST= HIGHEST O

    FIXED COST = HIGHEST OR L


    HANGE IN COST AND CHANGE IN ACTIVITY

    PARTICULAR UTILITY FACTORY OVERHEAD COST

    Highest 3,000.00 70,000.00


    Lowest 1,200.00 31,100.00
    Difference 1,800.00 38,900.00

    RIABLE COST (VC) PER UNIT

    CHANGE IN COST
    VARIABLE COST /UNIT=
    CHANGE IN ACTIVITY

    CHANGE IN FACTORY
    VARIABLE COST /UNIT= OVERHEAD COST 38,900.00
    CHANGE IN UTILITY 1,800.00

    VARIABLE COST /UNIT= 21.61

    RIABLE COST AT THE HIGHEST AND LOWEST LEVEL OF ACTIVITY

    VARIABLE COST= HIGHEST OR LOWEST ACTIVITY X VARIABLE COST PER UNIT

    TOTAL VARIABLE
    UNITS VARIABLE COST COST

    HIGHEST LEVEL 3,000.00 21.61 64,833.33

    LOWEST LEVEL 1,200.00 21.61 25,933.33

    FIXED COST = HIGHEST OR LOWEST COST - VARIABLE COST AT EACH LEVEL OF ACTIVITY

    UTILITY COST TOTAL VARIABLE COST FIXED COST


    HIGHEST LEVEL 70,000.00 64,833.33 5,166.67
    LOWEST LEVEL 31,100.00 25,933.33 5,166.67

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