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I need help guys, please help me with this one, thanks Cost Formulas Colonial Manufacturing produces a single product requiring the following direct materials and
I need help guys, please help me with this one, thanks
Cost Formulas Colonial Manufacturing produces a single product requiring the following direct materials and direct labor: Description Material A.... Material B Material C. Cutting labor Shaping labor Finishing labor... Cost per Unit of Input $12 pound 8/pound 15/gallon 14/hour 12/hour 16/hour Required Amount per Unit of Product 24 ounces 8 ounces 0.6 gallon 45 minutes 30 minutes 90 minutes Manufacturing overhead consists of indirect materials, $0.40 per unit of product; indirect labor, 5900 per month plus S0.80 per unit of product; factory maintenance, $18,000 per year plus 50.75 per unit of product; factory depreciation. 522.000 per year, and annual factory property taxes. S12.00. Selling and administrative expenses include the salaries of a sales manager, $45,000 per year, an office manager, $24,000 per year, and two salespersons, each of whom is paid a base salary of $18,000 per year and a commission of S3 per unit sold. Advertising and promotion of the product are done through a year-round media package program costing $1,000 per week. Required a. Analyze all cost and expense factors to determine a general formula (based on units of produc- tion) for total cost. b. Assuming a relevant range of 10,000 to 30,000 units, what is the estimated unit cost for produc- ing and selling 12.000 units? 24,000 units? Explain the variation in unit cost at the two levels of productionStep by Step Solution
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