Reference no: EM132637402

Question - ACME Widget factory produces 250,000 widgets last year and incurred the following costs:

Direct Materials = $64,500

Labor Costs = $118,000

Indirect Materials = $32,500

Administrative Costs = $40,000

Other Fixed Costs = $50,000

The management has decided the followings:

1. All of Direct Materials will be considered Variable Costs.

2. 70% of Labor Costs will be classified as VC and 30% as FC.

3. 40% of Indirect Materials will be classified as VC and 60% as FC.

4. All of Administrative Costs and Other Fixed Costs will be considered as FC.

Using the above information, calculate:

1. Total Variable Costs

2. Total Fixed Costs

3. Unit Variable Costs

4. Unit Fixed Costs

5. Total Costs for producing 1 unit of widget