Generic Motors Company
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Generic Motors Company wants to estimate its fixed costs and unit variable costs based on the following information for 2009. Its production volume for 2009 was 200 units.
| Cost account | Amount | fixed/variable? |
| direct labor | $6,000 | (1=fixed, 2=variable) |
| direct materials | $5,200 | (1=fixed, 2=variable) |
| depreciation | $9,700 | (1=fixed, 2=variable) |
| rent | $6,000 | (1=fixed, 2=variable) |
| administrative staff salaries | $10,300 | (1=fixed, 2=variable) |
Required:
a) Classify each cost account above as fixed or variable (none of them is mixed).
Enter your answers in the table above (enter 1 for fixed and 2 for variable costs)
b) Estimate fixed costs and unit variable costs using account classification method:
FC=$ unit VC=$
c) Based on the estimates from (b), what is the total cost of producing 250 units?
$
10 years ago
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