5 6 The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: Lamp Kit: Direct Labor. Variable Overhead: Fixed Overhead: Cost per lamp: 6 Expected increases for 20x2 $16.0000000 per lamp 2.0000000 per lamp (4 lamps/hr.) 2.0000000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) $30.0000000 per lamp 67 When calculating projected increases round to TWO ($0.00) decimal places. 58 59 60 70 71 72 73 74 84 85 86 87 88 98 99 100 101 102 112 1. Material Costs are expected to increase by 5.00% 2. Labor Costs are expected to increase by 5.50%. 3. Variable Overhead is expected to increase by 5.00%. 4. Fixed Overhead is expected to increase to $260,000. 5. Fixed Administrative expenses are expected to increase to $62,000. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 4.50%. 7. Fixed selling expenses are expected to be $23,000 in 20x 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 3.50%. 113 On the following schedule develop the following figures: 114 115 116 126 127 128 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 2- 20x2 Projected Variable Unit Cost per lamp. 3- 20x2 Projected Fixed Costs.