What costs will change with a decrease in activity

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Casual furniture company manufacturers outdoor furniture, and incurred the following costs during the month of January :

Timber 25000

Paint 5000

Glue 500

Wages assembly personnel 20 000

Wages factory supervisor 3500

Factory cleaners wages 2000

Sales commission 10000

Administrative staff salaries 4000

Depreciation factory equipment 3000

Depreciation sales office equipm 1000

Utilities, insurance factory 6000

Utilities, insurance, sales office 2000

Advertising 8000

Total costs 90000

Question 1: What is product costs Periodic cost Prime cost Conversion cost Manufacturing overhead costs

Question 2: What costs will change with a decrease in activity within relevant range? the cost formula Y=12000+R6X, total cost at an activity level of 8000 units would be?

Reference no: EM132598124

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