Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

.11 VZW Wi-Fi 6:56 AM 40%. SYLLABUS ACCT 347 Winter 2019.docx Accounting 347 Cost Behavior Project - Second Project Winter 2019 Bush incorporated, a manufacturing

image text in transcribed

.11 VZW Wi-Fi 6:56 AM 40%. SYLLABUS ACCT 347 Winter 2019.docx Accounting 347 Cost Behavior Project - Second Project Winter 2019 Bush incorporated, a manufacturing company reports the following actual costs for the year ended December 31, 2018 Account Classification Cost Direct materials Direct manufacturing labor Power Supervision labor Materials-handling labor Maintenance labor Depreciation Rent, property taxes, admin All Variable Al Variable All Variable 20% Variable 50% Variable 40% Variable All Fixed All Fixed $300,000 225,000 37,500 56,250 60,000 75,000 95,000 100.000 The company produced 75,000 units in 2018 and the management is estimating the costs for 2019 using the information from 2018. The following additional information is available for 2019 a. Direct materials prices in 2019 are expected to increase by 5% compared with 2018 b. Under the terms of the labor contract, direct manufacturing labor wage rates are expected to increase c Power rates and wage rates for supervision, materials d Depreciation costs, rent, property taxes, and e. The company expects to manufacture and sell 80,000 by 10% in 2019 compared with 2018 handling, and maintenance are not expected to change administration costs are expected to increase by 10% units in 2019 Requirements . Prepare a schedule of variable and fixed cost for each of the costs and total manufacturing cost for 2018 and 2019 2 Calculate the company's per unit cost for 2018 and 2019 Open With Print .11 VZW Wi-Fi 6:56 AM 40%. SYLLABUS ACCT 347 Winter 2019.docx Accounting 347 Cost Behavior Project - Second Project Winter 2019 Bush incorporated, a manufacturing company reports the following actual costs for the year ended December 31, 2018 Account Classification Cost Direct materials Direct manufacturing labor Power Supervision labor Materials-handling labor Maintenance labor Depreciation Rent, property taxes, admin All Variable Al Variable All Variable 20% Variable 50% Variable 40% Variable All Fixed All Fixed $300,000 225,000 37,500 56,250 60,000 75,000 95,000 100.000 The company produced 75,000 units in 2018 and the management is estimating the costs for 2019 using the information from 2018. The following additional information is available for 2019 a. Direct materials prices in 2019 are expected to increase by 5% compared with 2018 b. Under the terms of the labor contract, direct manufacturing labor wage rates are expected to increase c Power rates and wage rates for supervision, materials d Depreciation costs, rent, property taxes, and e. The company expects to manufacture and sell 80,000 by 10% in 2019 compared with 2018 handling, and maintenance are not expected to change administration costs are expected to increase by 10% units in 2019 Requirements . Prepare a schedule of variable and fixed cost for each of the costs and total manufacturing cost for 2018 and 2019 2 Calculate the company's per unit cost for 2018 and 2019 Open With Print

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions