Exercise 5-32 (Algo) Methods of Estimating Costs: Account Analysis (LO 5-3)

St. Kilda Enterprises produces parts for the electronics industry. The production manager and cost analyst reviewed the accounts for the previous month and have provided an estimated breakdown of the fixed and variable portions of manufacturing overhead.

	Fixed				Variable				Total
Indirect materials	$	2,200			$	7,200			$	9,400
Indirect labor		1,600				15,600				17,200
Supervision		8,200				2,600				10,800
Depreciation		35,200				3,200				38,400
Maintenance		15,200				20,200				35,400
Total	$	62,400			$	48,800			$	111,200

Direct materials for the month amounted to $93,500. Direct labor for the month was $188,500. During the month, 12,500 units were produced.

Required:

a. No changes are expected in these cost relations next month. The firm has budgeted production of 16,250 units. Provide an estimate for total production cost for next month. b. Determine the cost per unit of production for the previous month and the next month.

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Complete this question by entering your answers in the tabs below.

• Required A
• Required B

No changes are expected in these cost relations next month. The firm has budgeted production of 16,250 units. Provide an estimate for total production cost for next month. (Do not round intermediate calculations.)

Cost Item	Next Month's Costs
Direct materials
Direct labor
Variable overhead
Fixed overhead
Total costs	$0

Complete this question by entering your answers in the tabs below.

• Required A
• Required B

Determine the cost per unit of production for the previous month and the next month. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

	Cost per Unit
Last month
Next month