#2 as well as 3a, 3b, and 3c
Exercise 6-2A Distinction between relevance and cost behavior LO 6-1 Kilgore Company makes and sells a single product. Kilgore incurred the following costs in its most recent fiscal year Co ten prang an the Theme Song Materials cost (57 per unit) Sale in 2 O Hales Company presidentary Salarie dinistrative personne Depreciation on manufacturing equipaen happing and handling SOS per unit Customer billing costa o sales Depreciation on ottice Luxe Rental cost of manufacturing facility Manufacturing supplies $0.25 peranan Advertising cost $200,000 per year Production supervislary Labor coat (per unit) Kilgore could purchase the products that it currently makes it purchased the items, the company would continue to sell them using its own logo advertising program, and sales staff, Required Identify each cost as relevant or irrelevant to the outsourcing decision and indicate whether the cost is fixed or variable relative to the number of products manufactured and sold Relevance Behavior Cottoms Materials cost (57 per unit) Company president's salary Depreciation on manufacturing eqpment Customer billing costs (1% of sales) Rental cost of manufacturing facility Adding costs ($200.000 per year) Labor cost (58 per unit) Ses commissions (2% of sales) Swames of administrative personnel Shipping and handling (50 50 per unit) Depreciation on affice furniture Manufacturing supplies (50 25 per unit) Production supervisor's salary Exercise 6-3A Distinction between avoidable costs and cost behavior LO 6-1 Franklin Company makes fine jewelry that it sells to department stores throughout the United States. Franklin is trying to decide which of the two bracelets to manufacture. Cost data pertaining to the two choices follow Bracelet Bracelets Cost of materials per unit SO cost of labor per unit 37 37 Advertising cost per year 9,800 6.800 Annual depreciation on existing equipment 5,200 9,500 Required a. Identify the foxed costs and determine the amount of fixed cost for each product. b. Identify the variable costs and determine the amount of variable cost per unit for each product. c. Identify the avoidable costs and determine the amount of avoidable cost for each product Complete this question by entering your answers in the tabs below. Required A Required B Required Identify the faced costs and determine the amount of foved cost for each product. Fixed Costs Bracelet A Bracelet Total faced costs Required > Exercise 6-3A Distinction between avoidable costs and cost behavior LO 6-1 Franklin Company makes fine jewelry that it sells to department stores throughout the United States, Franklin is trying to decide which of the two bracelets to manufacture. Cost data pertaining to the two choices follow: Cost of materials per unit Cost of labor per unit Advertising cost per year Atinual depreciation on existing equipment Bracelet S43 37 9.800 5.200 Bracelet B $ 50 37 6,800 4.500 Required a. Identify the feed costs and determine the amount of foxed cost for each product b. Identify the variable costs and determine the amount of variable cost per unit for each product c. Identify the avoidable costs and determine the amount of avoidable cost for each product Complete this question by entering your answers in the tabs below. Required A Required e Required Identify the variable costs and determine the amount of vanable cost per unit for each product. Variable Costs Bracelet A Bracelet B Total vanable costs per unit Exercise 6-3A Distinction between avoidable costs and cost behavior LO 6-1 Franklin Company makes fine jewelry that it sells to department stores throughout the United States. Franklin is trying to decide which of the two bracelets to manufacture. Cost data pertaining to the two choices follow Cont or materials per unit Cost of labor per unit Advertising cost per year Annual depreciation on existing equipment Bice Bracelets G 11 56 37 37 9.000 6.500 5.200 4.500 Required a. Identify the fixed costs and determine the amount of fixed cost for each product b. Identify the variable costs and determine the amount of variable cost per unit for each product c. Identify the avoidable costs and determine the amount of avoidable cost for each product Complete this question by entering your answers in the tabs below. Required A Required Required Identify the avoidable costs and determine the amount of avoidable cost for each product. Avoidable Costs Bracelet A Bracelet B
