Chrysntag Company incurred the following costs for the months of January and February. Type of Cost January
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Question:
Chrysntag Company incurred the following costs for the months of January and February.
Type of Cost | January | February |
Insurance | $ 7,000 | $ 7,000 |
Utilities | 2,600 | 4,000 |
Depreciation | 2,000 | 2,000 |
Materials | 5,000 | 8,000 |
Assume that output was 5,000 units in January and 10,000 units in February, utility cost is a mixed cost, and the fixed cost of utilities was $3,000. What was the variable rate per unit of output for utilities cost?
| a. | $0.60 | |
| b. | $0.30 | |
| c. | $0.40 | |
| d. | $0.20 |
Expert Answer:
Related Book For 
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
