Question: Exercise 1-13 Variable and Fixed Cost Behavior (L01-4] Munchak Company's relevant range of production is 9,000-11,000 units. Last month the company produced 10,000 units. Its
Exercise 1-13 Variable and Fixed Cost Behavior (L01-4] Munchak Company's relevant range of production is 9,000-11,000 units. Last month the company produced 10,000 units. Its total manufacturing cost per unit produced was $70. At this level of activity the company's variable manufacturing costs are 40% of its total manufacturing costs. Required: Assume that next month Munchak produces 10,050 units and that its cost behavior patterns remain unchanged. Label each of the following statements as true or false with respect to next month. ces True or False True True Tron False Statement 1 The variable manufacturing cost per unit will remain the same as last month 2 The total fixed manufacturing cost will be greater than last month. 3 The total manufacturing cost will be greater than last month 4 The average faced manufacturing cost per unit will be less than last month 5 The total variable manufacturing cost will be less than last month 0 The total manufacturing cost per unit will be greater than last month. 7 The variable manufacturing cost per unit will equal $28 8 The total fixed manufacturing cost will equal $422,100 The total manufacturing cost wit equal. 5701400 10 The average foed manufacturing cost per unit rounded to the nearest cert) Wille 541,79 11 The total venatie maracturing cost will equal $200,000 12. The total arvutacturing cost per unit (rounded to the nearest cont will equal $69.79. False True
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