Angton Acoustics manufactures a line of quality speakers. The main production departments are Shipping, Assembly, and Fabrication. These departments are provided with services from centrally maintained facilities: computer, heating and air conditioning, and power.

The company is organized on a profit-center basis, with the service departments treated as cost centers. Consequently, each period, the costs of computing, heating, and power must be allocated to the production departments.

The company follows the practice of allocating budgeted fixed costs on the basis of planned usage and standard variable costs on the basis of actual usage.

The distribution of actual units of service provided last week is:

Computer	Heating	Power	Shipping	Assembly	Fabrication	Total units
Computer	500	1,000	2,000	2,000	2,500	2,000	10,000
Heating	3,000	2,000	4,000	5,000	3,000	3,000	20,000
Power	750	750	250	750	1,000	1,500	5,000

These service levels correspond to the amount of planned usage. This week's costs were a follows:

	Standard Variable Cost	Budgeted Fixed Cost
Computer	$30,000	$50,000
Heating	$60,000	$100,000
Power	$40,000	$80,000

Required:

(2) What is the variable cost per unit of service provided by the computer facility?

Answer rating: 100% (QA)

Variable Cost A variable cost is a type of cost that changes depending ... View the full answer