Kumquat Kar Fixers specializes in the repair and replacement of windshields for passenger vehicles. Variable and fixed costs related to installation activities for the most recent month (July) are listed below. 1,250 Item Number of windshields installed Variable expenses: Direct materials Direct labour (1 hour per installation) Indirect materials Fixed expenses: Installation supervisor's wages Installation scheduler's wages Warehouse expenses $ 252,500 36,250 10,000 50.53 $ ok 5,000 3,750 6,250 int Required: 1. Calculate the per unit amounts for each of the variable expense and fixed expense items in July. Per Unit Item Variable expenses Direct materials Direct labour (1 hour per installation) Indirect materials Foed expenses Installation supervisor's wages Installation scheduler's wages Warehouse expenses 2. Management expects that 1,450 windshields will be installed in August and that this level of activity is within the relevant range for all variable and fixed expenses. a&b-1. Calculate the total expense and per unit amounts for each of the variable and fixed cost items above. (Round "per unit" answers to 2 decimal places.) Item August (Total August Per Cost) Unit Variable expenses Direct materials Direct labour (1 hour per installation) Indirect materials Fixed expenses: Installation supervisor's wages Installation scheduler's wages Warehouse expenses b-2. Not available in Connect PS 3. Identify some factors that might cause variable costs per unit to change if the actual level of activity in a given month falls above or below the relevant range. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Direct material costs per unit could decrease if quantity discounts are received from the manufacturer for larger order quantities. Direct material costs could increase If quantity discounts currently being received are lost if order quantes decrease sigraficantly 7 Direct labour costs per unit could increase if activity levels Increase and installations have to be completed using more expensive overtime hours. Direct labour costs per unit could increase activity levels decrease and less experienced, and lower paid, installers are laid off Direct labour costs per unit could decrease as the number of installations increases due to the effects of learning (e. the ume regured for | Direct material costs per unit could increase tf quantity Ciscounts are received from the manufacturerfor larger order quarenes. 7 Direct material costs could decrease if quantity discounts currently being received are lost if order quantities decrease significantly each installation may decrease with experience