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In: Accounting

Blook Company manufactures organic cosmetics and has summarized the following monthly costs observed at various activity...

Blook Company manufactures organic cosmetics and has summarized the following monthly costs observed at various activity levels over their first year of operations. Considering your knowledge of variable costs and fixed costs within the relevant range determined the following requirements below.

Activity level Rent Expense Direct Materials

3,000 20,000 20,000

6,000 20,000 36,000

9,000 32,000 45,000

12,000 32,000 60,000

15,000 32,000 75,000

18,000 32,000 90,000

21,000 32,000 105,000

24,000 32,000 120,000

27,000 40,000 146,500

   30,000 40,000 175,000

33,000 40,000 220,000

Required

1. Variable cost rate within the relevant range.

2. Fixed cost within the relevant range.

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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