Exercise 11-5 Fixed versus variable cost behavior LO 11-1

Rundle Companys cost and production data for two recent months included the following:

	March			April
Production (units)		200			400
Rent	$	2,000		$	2,000
Utilities	$	800		$	1,600

Required

1. Separately calculate the rental cost per unit and the utilities cost per unit for both March and April.

2. Identify which cost is variable and which is fixed.

• Required A

Separately calculate the rental cost per unit and the utilities cost per unit for both March and April. (Round your answers to 2 decimal place

	March	April
Rent cost per unit
Utility cost per unit

• Required B

Identify which cost is variable and which is fixed.

Rent cost
Utility cost