- This topic has 0 replies, 1 voice, and was last updated 7 years ago by
.
Viewing 1 post (of 1 total)
- Posts
hi john
do not understand where the 210 batches comes from
Variable cost per hour ($850,000 – $450,000)/(5,000 hours – 1,800 hours) = $125 per hour
Fixed cost ($850,000 – (5,000 hours x $125)) = $225,000
Number of machine hours required for production = 210 batches x 14 hours = 2,940 hours
Total cost ($225,000 + (2,940 hours x $125)) = $592,500, therefore $593,000 to the nearest $’000.
Viewing 1 post (of 1 total)
- The topic ‘mcqs’ is closed to new replies.