At an activity level of 9300 engineering cost is 839790 and

At an activity level of 9,300 engineering cost is $839790 and its total fixed production engineering cost is $237820. What would be the total production engineering cost per unit, both fixed and variable, at an activity level of 9,400 machine-hours in a month? Assume that this level of activity is within the relevant range. (Do not round intermediate calculations) machine-hours in a month, Nooner Corporation\'s total variable production O $115.25 O $114.71 O $115.78 O $115.60

Solution

D. $115.60

Variable cost per unit = $839,790 ÷ 9,300 units = $90.30 per unit

Fixed cost per unit at 9,400 units = $237,820 ÷ 9,400 units = $25.30 per unit

Total cost = Variable cost + Fixed cost

= $90.30 per unit + $25.30 per unit

= $115.60