The following data pertains to activity and utility costs for two recent years:
Variable cost per unit = Change in cost Change in activity
= $3,000 4,000 units
= $0.75 per unit
Fixed cost = Total cost – Variable cost element
= $12,000 – ($0.75 per unit 10,000 units)
= $12,000 – $7,500
= $4,500
48. The following data pertains to activity and the cost of cleaning and maintenance for
two recent months: