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Please help with all three requirements. This is nothing like what we went over in class. Thank you! Hamwey, Inc., a manufacturer of plastic products,
Please help with all three requirements. This is nothing like what we went over in class. Thank you!
Hamwey, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis Hamwey, Inc., produced 75,000 units of product in 2020 . Hamwey's management is estimating costs for 2021 on classification for the year ended December 31,2020 the basis of 2020 numbers. The following additional information is available for 2021. E:= (Click the icon to see the account information.) i) (Click the icon to see the additional information.) Data table More info a. Direct materials prices in 2021 are expected to increase by 8% compared with 2020 . b. Under the terms of the labor contract, direct manufacturing labor wage rates are expected to increase by 8% 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 10%, and rent, property taxes, and administration costs are expected to increase by 9%. e. Hamwey expects to manufacture and sell 82,500 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 Hamwey'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 Maintenance labor these better estimates be useful to Hamwey? Requirement 1. Prepare a schedule of variable, fixed, 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 . Requirement 2. Calculate Hamwey's total manufacturing cost per unit in 2020, and estimate total manufacturing cost per unit in 2021. Begin by determining the formula to calculate the total manufacturing cost per unit, then enter the amounts in the formula. (Round the unit cost to the nearest cent.) ===Totalmfgcosperunitperunitperunit Requirement 3. How can you obtain better estimates of fixed and variable costs? Why would these better estimates be useful to Hamwey? Cost classification into variable and fixed costs is based on , analysis. Hamwey may want to undertake analysis of costs, using to better estimate the fixed and variable components of costs. Better knowledge of fixed and variable costs will help Hamwey toStep by Step Solution
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