Munchak company's relevant range of production is 9,000-11,000 units. last month the company produced 10,000 units. its total manufacturing cost per unit produced was $70. at this level of activity the company's variable manufacturing costs are 40% of its total manufacturing costs. required: assume that next month munchak produces 10,050 units and that its cost behavior patterns remain unchanged. label each of the following statements as true or false with respect to next month. statement true or false 1.the variable manufacturing cost per unit will remain the same as last month 2. the total fixed manufacturing cost will be greater than last month. 3. the total manufacturing cost will be greater than last month. 4. the average fixed manufacturing cost per unit will be less than last month 5. the total variable manufacturing cost will be less than last month 6 the total manufacturing cost per unit will be greater than last month 7. the variable manufacturing cost per unit will equal $28 8. the total fixed manufacturing cost will equal $422,100. 9.the total manufacturing cost will equal $701,400 10. the average fixed manufacturing cost per unit (rounded to the nearest cent) will equal $41.79. 11. the total variable manufacturing cost will equal $280,000 12. the total manufacturing cost per unit (rounded to the nearest cent) will equal $69.79

Explanation:

First, we have to compute the per unit cost for 10,000 units and 10,050 units and its cost

For 10,000 units

Total manufacturing cost per unit = $70

Variable cost per unit = $70 × 40% = $28

Fixed cost per unit = $70 - $28 = $42

Total manufacturing cost = 10,000 × $70 = $700,000

Variable cost = 10,000 × $28 = $280,000

Fixed cost =  10,000 × $42 = $420,000

For 10,050 units

Total manufacturing cost per unit = $69.79

Variable cost per unit =  $70 × 40% = $28

Fixed cost per unit = $420,000 ÷ 10,050 units = $41.79

Total manufacturing cost = 10,050 × $69.79 = $701,400

Variable cost = 10,050 × $28 = $281,400

Fixed cost = $420,000

1.The variable manufacturing cost per unit will remain the same as last month - True because the cost per unit will remain constant, but the variable cost would be different

2. The total fixed manufacturing cost will be greater than last month - False as fixed cost would remain unchanged whether production level increases or not

3. The total manufacturing cost will be greater than last month - True as the production level increased from 10,000 units to 10,050 units will increase the total manufacturing cost

4. The average fixed manufacturing cost per unit will be less than last month - True

5. The total variable manufacturing cost will be less than last month - False

6 The total manufacturing cost per unit will be greater than last month - False

7. The variable manufacturing cost per unit will equal $28 - True because $70 × 40% = $28

8. The total fixed manufacturing cost will equal $422,100 - False

9.The total manufacturing cost will equal $701,400 - True

10. The average fixed manufacturing cost per unit (rounded to the nearest cent) will equal $41.79 - True

11. The total variable manufacturing cost will equal $280,000 - False

12. The total manufacturing cost per unit (rounded to the nearest cent) will equal $69.79 - True