Mike's Radiator Services specializes in the repair and replacement of radiators for passenger vehicles Vorable and food costs related to installation activities for the most recent month Danuary are listed below ber of radiatoru replaced Variable expenses Direct materials (new radiatore) Direct labour houte per Installation Tedirect materials Fixed expenses Testallation rapevi's wagne Equipent depreciatice turnee and titties for garage $27,500 7.50 225 555,320 1.091 Required: 1. Calculate the per unit amounts for each of the variable expense and fixed expense niems in January Variable expenses Directes radiator Direct labour 2 hours per installation Indirect man Fred expenses Installation series wages Equipment depreciation Insurance and ulties for garage and fixed expenses. 2. Mice expects that 124 radiators will be installed in February and that this level of activity is in the event mange for at variable a & b-1. Calculate the total expense and per unit amounts for each of the variable and fixed cost hem above Round "per unit answers to 2 decimal places.) February [Total Con February Per Unit Variable expenses Direct material new radiators Direct our 2 hours person Indirect mais Fred expenses Installation superio's wages Equipment depreciation Insurance and utities for garage 6-2. Explain any cifferences in the per unit amounts between January and February 3. Which. If any of the costs shown above would be considered sunk costs? Why? Mike's Radiator Services specializes in the repair and replacement of radiators for passenger vehicles. Variable and fixed costs related to installation activities for the most recent month (January) are listed below: 155 Item Number of radiators replaced Variable expenses Direct material. (new radiators) Direct labour (2 hours per installation) Indirect materials Fixed expenses Installation supervisor's wages Equipient depreciation Insurance and utilities for garage $77,500 7.750 725 $15, 129 1,891 1,426 Required: 1. Calculate the per unit amounts for each of the variable expense and fixed expense items in January Per Unit Item Variable expenses: Direct materials (new radiators) Direct labour (2 hours per instalation) Indirect materials Fixed expenses Installation supervisor's wages Equipment depreciation Insurance and utilities for garage 2. Mike expects that 124 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.) Item February (Total Cost) February Per Unit Variable expenses: Direct materials (new radiators) Direct labour (2 hours per instalation) Indirect materials Fixed expenses: Installation supervisor's wages Equipment depreciation
