H B D The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: Lamp Kit: $16.0000000 per lamp Direct Labor 2.0000000 per lamp (4 lamps/hr.) Variable Overhead: 2.0000000 per lamp Fixed Overhead: 10.0000000 per lamp (based on normal capacity of 25,000 lamps) 3 4 Cost per lamp $30.0000000 per lamp 1 -2 Expected increases for 20x2 33 When calculating projected increases round to TWO ($0.00) decimal places. 34 1. Material Costs are expected to increase by 2.00% 35 42 43 44 45 2. Labor Costs are expected to increase by 6.50%. 3. Variable Overhead is expected to increase by 4.50%. 46 53 by 5.00% 4. Fixed Overhead is expected to increase to $280,000 54 55 5. Fixed Administrative expenses are expected to increase to $46,000 56 57 6. Variable selling expenses (measured on a per lamp basis) are expected to increase 64 65 66 7. Fixed selling expenses are expected to be $37,000 in 20x2 67 68 8. Variable administrative expenses (measured a per lamp basis) are expected to 75 increase by 6.00% 76 77 On the following schedule develop the following figures: 78 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 79 86 2- 20x2 Projected Variable Unit Cost per lamp 87 88 3- 20x2 Projected Fixed Costs. 89 90 07 ariable Manufacturing Unit Cost 20x 1 Cost 20x2 Cost Rounded to 2 Decimal Places 16 Projected Percent Increase 2% 6.50% 4.50% amp Kit 2 $16.32 $2.13 $2.09 {4.01) {4.02) {4.03) Labor Variable Overhead 2 20 $20.54 {4.04 Projected Variable Manufacturing Cost Per Unit Total Variable Cost Per Unit 20x1 Cost 20x2 Cost Rounded to 2 Decimal Places Projected Percent Increase 5% 6.50% {4.05) {4.06) {4.04) 5 Variable Selling 6 Variable Administrative 27 Projected Variable Manufacturing Unit Cost 28 30 31 Projected Total Variable Cost Per Unit 32 33 34 36 Schedule of Fixed Costs {4.07) 20x1 Cost 20x2 Cost Projected Percent Increase {4.08) lamps @) 37 38 Fixed Overhead 39 (normal capacity of 40 Fixed Selling 42 Fixed Administrative 43 44 Projected Total Fixed Costs 12 3 4 (4.09) (410) (411) 10 7 11 19 14 9 8 12 15