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Paste Cells st5 B38 Format as Table Font Alignment Number Cell Styles , Pix B C D E F G Fixed and Variable Cost Determinations

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Paste Cells st5 B38 Format as Table Font Alignment Number Cell Styles , Pix B C D E F G Fixed and Variable Cost Determinations Unit Cost Calculations A 8 The projected cost of a lamp is calculated based upon the projected increases or decreases to 9 current costs. The present costs to manufacture one lamp are: Lamp Kit: Direct Labor Variable Overhead: Fixed Overhead: $16.0000000 per lamp 2.0000000 per lamp (4 lamps/hr.) 2.0000000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps). Cost per lamp: $30.0000000 per lamp 30 Expected increases for 20X2 31 When calculating projected increases round to TWO ($0.00) decimal places. 1. Material costs are expected to increase by 6.50%. 2. Labor Costs are expected to increase by 3.50%. 3. Variable Overhead is expected to increase by 3.00%. 4. Fixed Overhead is expected to increase to $270,000. 5. Fixed Administrative expenses are expected to increase to $56,000. 6. Variable seling expenses (measured on a per lamp basis) are expected to increase by 6.00% 7. Fixed selling expenses are expected to be $27,000 in 20x2. 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 6.50% On the following schedule develop the following figures 1. 20x2 Projected Variable Manufacturing Unit Cost of a lamp. FAQ 1 3 9 Variable Manufacturing Unit Cost 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 2 Decimal Places 11 Lamp Kit 12 Labor 19 Variable Overhead $17.04 $2.07 $2.06 (4.01) (4.02) (4.03) $21.17 (4.04) 21 Projected Variable Manufacturing Cost Per Unit 31 Total Variable Cost Per Unt 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 2 Decimal Places 3.18 2.13 33 Variable Selling 34 Variable Administrative 41 Projected Variable Manufacturing Unit Cost (4.05) (4.06) (4.04) 20.85 (4.07) 44 Projected Total Variable Cost Per Unit 54 Schedule of Fixed Costs 20x1 Cost 20x2 Cost Projected Percent Increase (4.08) lamps @_) 56 Fixed Overhead 63 (normal capacity of 64 Fixed Selling 65 Fixt Administrative (4.09) (4.10) 67 Projected Total Fixed Costs 358,000.00 (4.11)

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