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andreaerob andreaerob
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5 years ago
Grimes Company incurred fixed costs of $310,000. Total costs, both fixed and variable, are $480,000 when 50,000 units are produced. It sold 40,000 units during the year. Calculate the variable cost per unit.
A) $9.60
B) $4.25
C) $6.20
D) $3.40
Textbook 
Horngren's Accounting

Horngren's Accounting


Edition: 11th
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Replies
wrote...
5 years ago
 D
Explanation:  D)
Total costs$480,000
Less: fixed costs(310,000)
Variable costs (A)170,000
Number of units (B)50,000
Variable cost per unit (A) / (B)$3.40
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