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Lurvey, Inc. a manufacturer of plastic products, reports the following Lurvey, Inc, produced 72,500 units of product in 2020. Lurvey's management is manufacturing costs and

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Lurvey, Inc. a manufacturer of plastic products, reports the following Lurvey, Inc, produced 72,500 units of product in 2020. Lurvey's management is manufacturing costs and account analysis classification for the year ended estimating costs for 2021 on the basis of 2020 numbers. The following additional December 31, 2020 information is available for 2021 Click the icon to see the account information) (Click the icon to see the additional information) Read the requirements Requirement 1. Prepare a schedule of variable, foxed, and total manufacturing costs for each account category in 2021. Estimate total manufacturing costs for 2021 To assist you begin by selecting the formula to calculate the variable cost for each account in 2021 Variable unit cost in 2021 king the Account Classification Amount All variable $ 326,250 All variable 217 500 All variable 54,375 15% variable Direct materials Direct manufacturing labor Power Supervision labor Materials-handling labor Maintenance labor Depreciation Rent, property taxes, and administration 40% variable 72,500 72,500 72,500 40% variable 0% variable 92.000 0% variable 125 000 a. Direct materials prices in 2021 are expected to increase by 4% compared with 2020. b. Under the terms of the labor contract, direct manufacturing labor wage rates are expected to increase by 4% in 2021 compared with 2020 c. Power rates and wage rates for supervision, materials handling, and maintenance are not expected to change from 2020 to 2021 d. Depreciation costs are expected to increase by 9% and rent property taxes, and administration costs are expected to increase by 12%. e. Lurvey expects to manufacture and sell 80,000 units in 2021 1. Prepare a schedule of variable, fixed, and total manufacturing costs for each account category in 2021. Estimate total manufacturing costs for 2021. 2. Calculate Lurvey's total manufacturing cost per unit in 2020, and estimate total manufacturing cost per unit in 2021. 3. How can you obtain better estimates of fixed and variable costs? Why would these better estimates be useful to Lurvey

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