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Cost behavior Merry Olde Games produces croquet sets. The company makes fixed monthly payments to the local utility based on the previous year's electrical usage.
Cost behavior Merry Olde Games produces croquet sets. The company makes fixed monthly payments to the local utility based on the previous year's electrical usage. Any difference between actual and expected usage is paid in January of the year following usage. In February, Merry Olde Games made 2,000 croquet sets and incurred the following costs: Cardboard boxes Mallets (2 per set) Croquet balls (6 per set) Wire hoops (12 per set, including extras) Total hourly wages for production workers Supervisor's salary Building and equipment rental Utilities $2,000 24,000 18,000 7,200 16,800 5,200 5,600 2,600 $81,400 Total a. What was the per-unit cost of each component of a croquet set? Enter amounts in the table below. Note: If an amount is not determinable, leave the answer blank or enter a zero. b. What was the total cost of each croquet set? Enter the amounts in the table below. Note: If an amount is not determinable, leave the answer blank or enter a zero. (a) Cost Per Unit (b) Cost Per Set $ 1 $ 1 6 12 9 1.5 0.3 3.6 Cardboard boxes Mallets Croquet balls Wire hoops Production worker wages Supervisor's salary Building and equipment rental Utilities 0 8.4 O 2.6 0 2.8 0 1.3 Total $ 40.7 C. Production for March is expected to be 2,500 croquet sets. Last November, when 2,500 sets were c. Production for March is expected to be 2,500 croquet sets. Last November, when 2,500 sets were made, utility Lost was $2,800. There have been no rate changes at the local utility companies since that time. What is the estimated cost per set for March? $ 32.56 x
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