Hi There, Is Power a fixed cost for a Variable cost. I need to work out thr fixed cost or variable costs or both from the data below.

Number of Drinks Produced per Crushing & Mixing machine per hour 740.00

Number of Crushing & Mixing Machines 3.00
Crushing and Mixing Machine Power costs per machine per hour 92.65

Packaging Machine Power costs per machine per hour 256.40
Number of Packaging Machines 1.00
one Packaging Machine can package the output from three crushing and mixing machines per hour

CaptainForest

It could be either.

But I would say it would be variable in your situation.

If you do not use the 3 machines, then you will not be using any power.

redlion

Thanks CaptainForest,
So the Variable Cost per unit for the Crushing Machine would be.

3 three machines total out out put per hour 2,220
total power cost 277.95

277.95/2200 = .13 cent per unit?

CaptainForest

Drinks/Machine/Hour 740

3 machines

Cost/Machine/Hour 92.65

Total Cost/Hour = 92.65 x 3 = 277.95
Total Output/Hour = 740 * 3 = 2,220



Packing Machine = 1
Cost/Hour 256.40
one Packaging Machine can package the output from three crushing and mixing machines per hour


In 1 hour, can package 2,220 output from above.

So, overall total cost = 227.95 + 256.40 = 484.35
Total output = 2,220

Unit Cost = 484.35 / 2,220 = $0.22

redlion

Thanks mate Appreciate your help, I have anoth question for you, what would be the Direct Labout per Unit from the Information Below.

Number of Drinks Produced per Crushing & Mixing machine per hour 740.00
Number of Normal Hours in a week per the award 40.00
Overtime Rate (eg Time and a half enter 1.5, Double Time enter 2) 1.50
Crushing & Mixing Machine Operators wages per hour 33.75
Packaging Machine Operators Wages per Hour 32.00
Number of Packaging Machine Operators 1
Number of Crushing & Mixing Machine Operators 3