What happens to unit cost as the number of units


Budgeted amounts for the year:

Materials 2 leather strips      @ $6.00

Labor 0.5 hr.                         @ $18.00

VOH 0.5 hr.                           @ $1.20

FOH                                        $6,800

Required:

1. Prepare a ?exible budget for 3,500, 4,000, and 4,500 units.

2. Conceptual Connection: Calculate the unit cost at 3,500, 4,000, and 4,500 units. (Note: Round unit costs to the nearest cent.) What happens to unit cost as the number of units produced increases?

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Accounting Basics: What happens to unit cost as the number of units
Reference No:- TGS0690928

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