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help me please Flexible budget Tom's Shoe Repair provides a variety of shoe repair services. Analysis of monthly costs revealed the following cost formulas when
help me please
Flexible budget Tom's Shoe Repair provides a variety of shoe repair services. Analysis of monthly costs revealed the following cost formulas when direct labor hours are used as the basis of cost determination: Supplies y = $0+ $4.00x Production supervision and direct labor y = $500 + $7.00X Utilities y = $350 + $5.40x Rent y = $450 + $0.00X y$75 + $0.00x d. Prepare a flexible budget at 500, 600, 700, and 800 direct labor hours. Advertising 500 600 700 800 $ $ Variable costs Supplies @ $4.00 per DLH Direct labor $7.00 per DLH Utilities @ $5.40 per DLH Fixed costs: Direct labor Utilities Rent Advertising Total cost $ $ $ b. Calculate a total cost per direct labor hour at each level of activity. Round amounts to two decimal places, 600 700 800 $ 500 Cost per DLH $ C. Tom's employees usually work 700 direct labor hours per month. The average shoe repair requires 1,25 labor hours to complete. Tom wants to earn a 40 percent margin on his cost. What should be the average charge per customer, rounded to the nearest dollar to achieve Tom's profit objective? $Step by Step Solution
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