Use the following to answer questions:
Crowley Company has gathered the following data related to its production process of two of its products for the week ended April 30:

-If the cost behaviors exhibited in this chart continue and the company produces 90 units of product 100B during May, the expected total unit-level material cost of product 100 B would be:
A) $171,000
B) $63,000
C) $42,000
D) $114,000

Question

Use the following to answer questions:
Crowley Company has gathered the following data related to its production process of two of its products for the week ended April 30:
 
-If the cost behaviors exhibited in this chart continue and the company produces 90 units of product 100B during May, the expected total unit-level material cost of product 100 B would be:
A) $171,000 
B) $63,000 
C) $42,000 
D) $114,000

Quizplus · Accepted Answer

The cost is directly proportional to the number of units produced. If producing 30 units costs $21,000 (as implied by the question's context), producing 90 units (which is 3 times 30 units) would cost 3 times $21,000, which equals $63,000.

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