7 8 The projected cost of a lamp is calculated based upon the projected increases or decreases to 9 current costs. The present costs to manufacture one lamp are: 10 11 Figurines $9.2000000 per lamp 18 Electrical Sets 1.2500000 per lamp 19 Lamp Shade 6.0000000 per lamp 20 Direct Labor 2.2500000 per lamp (4 lamps/hr.) 21 Variable Overhead: 0.2250000 per lamp 22 Fixed Overhead 10.0000000 per lamp (based on normal capacity of 25,000 lamps) 29 30 Cost per lamp $28 9250000 per lamp 31 32 Expected increases for 20x2 33 When calculating projected increases round to SEVEN decimal places 50.0000000 20 1. Material Costs are expected to increase by 6.40% 11 2 3 4 1 2 3 4 3 2. Labor Costs are expected to increase by 2.50% 3. Variable Overhead is expected to increase by 3.50% 4. Fixed Overhead is expected to increase to $260,000 5. Fixed selling expenses are expected to be $37.000 in 20x2. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 2.50% 3 7 Fixed Administrative expenses are expected to increase by $18,000. The total administrative expenses for 20x0 were 541,205.00, when 23,500 units were sold. Use the High-Low method to calculate the total fixed administrative expense. 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 5.00%. The total administrative expenses for 20x0 were S41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the variable administrative expense per lamp. On the following schedule develop the following figures: 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 2- 20x2 Projected Variable Unit Cost per lamp. 3- 20x2 Projected Fixed Costs. 34 35 Total Variable Cost Per Unit 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 7 Decimal Places 36 44 Variable Selling 45 Variable Administrative 20x1 46 Variable Administrative 20x2 47 48 Projected Variable Manufacturing Unit Cost 56 Projected Total Variable Cost Per Unit 57 58 59 60 Schedule of Fixed Costs 20x1 Cost Projected Increase 20x2 Cost Rounded to 2 Decimal Places lamps @_) 68 69 Fixed Overhead 70 (normal capacity of 71 Fixed Selling 72 Fixed Administrative 20x1 BO Fixed Administrative 20x2 81 Projected Total Fixed Costs 32 33 7 8 The projected cost of a lamp is calculated based upon the projected increases or decreases to 9 current costs. The present costs to manufacture one lamp are: 10 11 Figurines $9.2000000 per lamp 18 Electrical Sets 1.2500000 per lamp 19 Lamp Shade 6.0000000 per lamp 20 Direct Labor 2.2500000 per lamp (4 lamps/hr.) 21 Variable Overhead: 0.2250000 per lamp 22 Fixed Overhead 10.0000000 per lamp (based on normal capacity of 25,000 lamps) 29 30 Cost per lamp $28 9250000 per lamp 31 32 Expected increases for 20x2 33 When calculating projected increases round to SEVEN decimal places 50.0000000 20 1. Material Costs are expected to increase by 6.40% 11 2 3 4 1 2 3 4 3 2. Labor Costs are expected to increase by 2.50% 3. Variable Overhead is expected to increase by 3.50% 4. Fixed Overhead is expected to increase to $260,000 5. Fixed selling expenses are expected to be $37.000 in 20x2. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 2.50% 3 7 Fixed Administrative expenses are expected to increase by $18,000. The total administrative expenses for 20x0 were 541,205.00, when 23,500 units were sold. Use the High-Low method to calculate the total fixed administrative expense. 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 5.00%. The total administrative expenses for 20x0 were S41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the variable administrative expense per lamp. On the following schedule develop the following figures: 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 2- 20x2 Projected Variable Unit Cost per lamp. 3- 20x2 Projected Fixed Costs. 34 35 Total Variable Cost Per Unit 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 7 Decimal Places 36 44 Variable Selling 45 Variable Administrative 20x1 46 Variable Administrative 20x2 47 48 Projected Variable Manufacturing Unit Cost 56 Projected Total Variable Cost Per Unit 57 58 59 60 Schedule of Fixed Costs 20x1 Cost Projected Increase 20x2 Cost Rounded to 2 Decimal Places lamps @_) 68 69 Fixed Overhead 70 (normal capacity of 71 Fixed Selling 72 Fixed Administrative 20x1 BO Fixed Administrative 20x2 81 Projected Total Fixed Costs 32 33