PART 1 Fixed and Variable Cost Determinations Unit Cost Calculations The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: Figurines Electrical Sets Lamp Shade Direct Labor Variable Overhead: Fixed Overhead: $9.2000000 per lamp 1.2500000 per lamp 6.0000000 per lamp 2.2500000 per lamp (4 lamps/hr.) 0.2250000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp: $28.9250000 per lamp Expected increases for 20x2 When calculating projected increases round to SEVEN decimal places,$0.0000000 1. Material Costs are expected to increase by 3.00% 2. Labor Costs are expected to increase by 3.00% 3. Variable Overhead is expected to increase by 3.50%. 4. Fixed Ovemead is expected to increase to $260,000. 5. Fixed selling expenses are expected to be $39,000 in 20x2. 4 6. Variable selling expenses (measured on a por lamp basis) are expected to increase by 3.50% 1. Material Costs are expected to increase by 3.00%. 2. Labor Costs are expected to increase by 3.00%. 3. Variable Overhead is expected to increase by 3.50%. 4. Fixed Overhead is expected to increase to $260,000. 5. Fixed selling expenses are expected to be $39,000 in 20x2. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 3.50%. 7. Fixed Administrative expenses are expected to increase by $2,000. The total administrative expenses for 20x0 were $40,625.00, when 22,500 units were sold. Use the High-Low method to calculate the total fixed administrative expense. 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 5.00%. The total administrative expenses for 20x0 were $40,625.00, when 22,500 units were sold. Use the High-Low method to calculate the variable administrative expense per lamp On the following schedule develop the following figures: 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 2- 20x2 Projected Variable Unit Cost per lamp. 3- 20x2 Projected Fixed Costs. B Variable Manufacturing Unit Cost 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 7 Decimal Places {4.01 Figurines Electrical Sets Lamp Shade Labor {4.02 {4.03 {4.04 {4.05) Variable Overhead Projected Variable Manufacturing Cost Per Unit (4.06) Total Varioblo Cost Per Unit 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 7 Decimal Places 4 {4.07) 5 Variable Selling 7 Variable Administrative 20x1 28 Variable Administrative 20x2 (4.08) {4.09) 29 30 Projected Vanable Manufacturing Unit Cost 31 Projected Total Variable Cost Per Unit {4.06) {4.10) 33 34 25 Schedule of Fixed Costs 20x1 Cost Projected Increase 20x2 Cost Rounded to 2 Decimal Places {4.11) lamps @_) Fixed Overhead (nomal capacity of Fixed Seling Fixed Administrative 20x1 Fixed Administrative 20x2 Projected Total Fixed Costs {4.12) {4.13) (4.14) {4.15) 3 9 1 -2 53 54 ER
