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    redlion's Avatar
    redlion Posts: 3, Reputation: 1
    New Member
     
    #1

    Jul 24, 2006, 03:49 PM
    Power Fixed or Variable
    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's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Jul 24, 2006, 05:23 PM
    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's Avatar
    redlion Posts: 3, Reputation: 1
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    #3

    Jul 24, 2006, 05:29 PM
    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's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #4

    Jul 24, 2006, 05:38 PM
    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's Avatar
    redlion Posts: 3, Reputation: 1
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    #5

    Jul 24, 2006, 05:45 PM
    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

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