Problem Solving Questions (3 questions, total 70 points) Problem 1. Cost behaviors (16 points) y = Page 17 a + bx activity 7 T Level Ur. Violin Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product Production volume...........- Direct materials..... Direct labor Manufacturing overhead...... 4,000 units S89.70 per unit S22.60 per unit S70.50 per unit 5,000 units 589.70 per unit S22.60 per unit $60.30 per unit 1. Compute the total variable manufacturing cost per unit. (8 points). change in cost Variabe oH per units change in unit var on = 150004 60.3) - (4000x70.5) 0*70.5) 3016 301500. 282.000 $19.5 5000-4000 1000 Total var man cost = $19.5+ 89, 7+22.6 = ($131.8 on hedrerhoed total orchead a ble creuad 2. Compute the total fixed manufacturing cost at the production volume 4,500 units. (8 points). Total fixed man cost = AC 313 Seaver College Pepperdine University Dongkuk Lim, Ph.D