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Cost engineering subject. The company paper x manufactures used cards. To make a card the company incurs material costs of $2.90 of paper per card,

Cost engineering subject.

The company paper x manufactures used cards.

To make a card the company incurs material costs of $2.90 of paper per card, $1.15 of ink per card, and $0.35 of wrapping per card. It also has a direct labor cost of $750,000 per month and an indirect cost calculated based on the following formula:

Indirect cost = $46,900 + 2.72n

The company manufactures 115,000 cards monthly and has an operating expense divided as follows: Administration expenses of $122,000 per month and selling expenses of $88,000 per month. The company manages a profit margin of 30% per card.

Calculate:

  1. The total monthly indirect cost of the company.
  2. The unit indirect cost per card.
  3. The total unit manufacturing cost per card.
  4. The unit sale price.
  5. Prepare an income statement for the company

*Use the contemporary costing method.

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