Preview File Edit Copy of Srikant M. Datar, Madhav V. Rajan-Horngren's Cost Accounting. A Managerisl Emphass (2017, Pearson).pdf (pago 430 of 095) 1 View Go Tools Window Help a Search AuawcNTwATC 10-26 Account analysis method. Gower, Inc, a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2017. Classification All variable All variable Account Amount $300,000 225,000 Direct materials Direct manufacturing labor Power All variable 20% variable 37,500 58,250 60,000 75.000 95,000 Supervision labor Materials-handling labor Maintenance labor Depreciation Rent, property taxes, and administration 50% variable 40% variable 0% variable 0% variable 100,000 Gower, Inc., produced 75,000 units of product in 2017. Gower's management is estimating costs for 2018 on the basis of 2017 numbers. The following additional information is available for 2018. aDirect materials prices in 2018 are expected to increase by 5% compared with 2017 b. Under the terms of the labor contract, direct manufacturing labor wage rates are expected to increase by 10% in 2018 compared with 2017. Power rates and wage rates for supervision, materials handling, and maintenance are not expected to change from 2017 to 2018, d. Depreciation costs are expected to increase by 5 % , and rent, property taxes, and administration costs are expected to increase by 7% e. Gower expects to manufacture and sell 80,000 units in 2018 1. Prepare a schedule of variable, fixed, and total manufacturing costs for each account category in 2018. Estimate total manufacturing costs for 2018 2 Calculate Gower's total manufacturing cost per unit in 2017, and estimate total manufacturing cost per unit in 2018. 3. How can you obtain better estimates of fixed and variable costs? Why would these better estimates be useful to Gower? Required 10-27 Estimating a cost function, high-low method. Reisen Travel offers helicopter service from sub- urben towns to John F. Kennedy International Airport in New York City. Each of its 10 helicopters makes 4277 MacBook Air esc 44 F3 F2 4 F6 $ % & Preview File Edit Copy of Srikant M. Datar, Madhav V. Rajan-Horngren's Cost Accounting. A Managerisl Emphass (2017, Pearson).pdf (pago 430 of 095) 1 View Go Tools Window Help a Search AuawcNTwATC 10-26 Account analysis method. Gower, Inc, a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2017. Classification All variable All variable Account Amount $300,000 225,000 Direct materials Direct manufacturing labor Power All variable 20% variable 37,500 58,250 60,000 75.000 95,000 Supervision labor Materials-handling labor Maintenance labor Depreciation Rent, property taxes, and administration 50% variable 40% variable 0% variable 0% variable 100,000 Gower, Inc., produced 75,000 units of product in 2017. Gower's management is estimating costs for 2018 on the basis of 2017 numbers. The following additional information is available for 2018. aDirect materials prices in 2018 are expected to increase by 5% compared with 2017 b. Under the terms of the labor contract, direct manufacturing labor wage rates are expected to increase by 10% in 2018 compared with 2017. Power rates and wage rates for supervision, materials handling, and maintenance are not expected to change from 2017 to 2018, d. Depreciation costs are expected to increase by 5 % , and rent, property taxes, and administration costs are expected to increase by 7% e. Gower expects to manufacture and sell 80,000 units in 2018 1. Prepare a schedule of variable, fixed, and total manufacturing costs for each account category in 2018. Estimate total manufacturing costs for 2018 2 Calculate Gower's total manufacturing cost per unit in 2017, and estimate total manufacturing cost per unit in 2018. 3. How can you obtain better estimates of fixed and variable costs? Why would these better estimates be useful to Gower? Required 10-27 Estimating a cost function, high-low method. Reisen Travel offers helicopter service from sub- urben towns to John F. Kennedy International Airport in New York City. Each of its 10 helicopters makes 4277 MacBook Air esc 44 F3 F2 4 F6 $ % &
