G The following variable produc htt mflowconnecthtml 212223

G The following variable produc: × htt m/flow/connect.html 2-1,2-2&2-3 Saved Help Tanaka Company\'s cost and production data for two recent months included the following: Produetion (units) 300 600 $1,800 $1,800 600 $1,200 utilities Required a. Separately calculate the rental cost per unit and the utilities Sost per unit for both March and April. b. Identify which cost is variable and which is fixed. Complete this question by entering your answers in the tabs below Required A Required B Separately calculate the rental cost per unit and the utilities cost per unit for both March and April. Rent cost per unit Ulity cost per unit s2 Required & >

Solution

Solution a:

Rent cost per unit = Total rent/ Units produced

March Rent per unit = $1800/ 300 = $6

April Rent per unit = $1800/600 = $3

Utilitiest cost per unit = Total utilities cost / unit produced

March Utilities per unit = $600 / 300 = $2 per unit

April Utilities per unit = $1200 / 600 = $2 per unit

Solution b:

Rent cost is a fixed cost because the total rent cost remains same even if the Number of unit produced changes.

Utilities cost is a variable cost because it gets changed wuth the change in production units and per unit utilities cost is same. That utilities cost changes when production changes.