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Mike's Radiator Services specializes in the repair and replacement of radiators for passenger vehicles. Variable and fixed costs relate to installation activities for the
Mike's Radiator Services specializes in the repair and replacement of radiators for passenger vehicles. Variable and fixed costs relate to installation activities for the most recent month (January) are listed below. Item Number of radiators replaced 175 Variable expenses: Book Direct materials (new radiators) $87,500 Direct labour (2 hours per installation) Indirect materials 8,750 875 "erences Fixed expenses Installation supervisor's wages $18,200 Equipment depreciation Insurance and utilities for garage 2,275 1,750 Required: 1. Calculate the per unit amounts for each of the variable expense and fixed expense items in January Item Variable expenses Direct materials (new radiators): Direct labour (2 hours per installation) Indirect materials Fixed expenses Per Unit Book rences Variable expenses Item Direct materials (new radiators) Direct labour (2 hours per installation). Indirect materials Fixed expenses: Installation supervisor's wages Equipment depreciation Insurance and utilities for garage Per Unit 2. Mike expects that 140 radiators will be installed in February 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.) 5 Book Ferences 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.) Variable expenses Item Direct materials (new radiators) Direct labour (2 hours per installation) Indirect materials Fixed expenses Installation supervisor's wages Equipment depreciation Insurance and utilities for garage: February February Per (Total Cost) Unit b-2. This part of the question is not part of your Connect assignment 3. This part of the question is not part of your Connect assignment
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