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Benoit, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2021. K (Click
Benoit, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2021. K (Click the icon to see the account classification.) Benoit, Inc., produced 77,500 units of product in 2021. Benoit's management is estimating costs for 2022 on the basis of 2021 numbers. The following additional information is available for 2022. i (Click the icon to see the additional information.) Required X Account classification Account Classification Amount Direct materials All variable $ 290,625 Direct manufacturing labour All variable 232,500 Variable unit Power All variable 58, 125 Supervision labour 15% variable 62,000 - X Additional information Materials-handling labour 50% variable 77,500 Maintenance labour 50% variable 77,500 Depreciation 0% variable 105,000 a. Direct materials prices in 2022 are expected to increase by 8% compared with 2021. 0% variable 105,000 b. Under the terms of the labour contract, direct manufacturing labour wage rates are Rent, property taxes, and administration expected to increase by 8% in 2022 compared with 2021. Power rates and wage rates for supervision, materials handling, and maintenance are not - X expected to change from 2021 to 2022. Required . Depreciation costs are expected to increase by 6%, and rent, property taxes, and administration costs are expected to increase by 7%. e. Benoit expects to manufacture and sell 87,500 units in 2022. hte 1. Prepare a schedule of variable, fixed, and total manufacturing costs for each ount account category in 2022. Estimate total manufacturing costs for 2022. 2. Calculate Benoit's total manufacturing cost per unit in 2021, and estimate total manufacturing cost per unit in 2022. Print Done 3 . How can you obtain better estimates of fixed and variable costs? Why would these better estimates be useful to Benoit? LOCAL Pages er
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