P&S has a factory that produces cabinets for the RV and marine market. The company has other product lines. Materials and labor for the cabinets are determined by each job. To simplify the assignment, we will assume the following average costs The following information highlights P&S Manufacturing's cost structure for 2021. . The materials include $5,000 for materials on a per job basis. It requires 35 hours of labor on average for the cabinetry. The hourly rate is $15. The sales price will be set at a markup of 85%. The company estimates that it will have 70,000 direct labor hours in total for the cabinets. It assumes 2.000 units are sold on average per year. . . . A breakdown of estimated yearly costs related to the cabinetry follows: Salaries- Sales force Salaries for factory laborers Office Rent Factory Rent Office utilities and Misc office expenses based on units sold) Sales travel(based on units sold) Insurance office Depreciation - office equipment Depreciation for factory equipment Advertising Sales commissions(based on units sold) Factory Property taxes Maintenance for factory equipment - $ 594.000 $ 390,500 $ 159,500 $ 35,200 $ 17,600 $ 25,300 $ 15.400 $ 45,100 $ 79,200 $ 38,500 $ 59,400 $28,600 $ 93,500 Hint: you will need to distinguish between product vs. period costs and variable vs fixed costs. Please do not forget all costs for this company(not just the ones listed above in the table) based on 2,000 units above) 2. Determine the average cost of manufacturing one unit given the volume expected to be sold every year and assuming the MOH costs are allocated based on the direct labor hours per unit. Please show all calculations and round to the nearest dollar. Calculate the sales price based on your cost calculation. I would recommend that you calculate the MOH per unit first, You should calculate an Overhead rate. P&S has a factory that produces cabinets for the RV and marine market. The company has other product lines. Materials and labor for the cabinets are determined by each job. To simplify the assignment, we will assume the following average costs The following information highlights P&S Manufacturing's cost structure for 2021. . The materials include $5,000 for materials on a per job basis. It requires 35 hours of labor on average for the cabinetry. The hourly rate is $15. The sales price will be set at a markup of 85%. The company estimates that it will have 70,000 direct labor hours in total for the cabinets. It assumes 2.000 units are sold on average per year. . . . A breakdown of estimated yearly costs related to the cabinetry follows: Salaries- Sales force Salaries for factory laborers Office Rent Factory Rent Office utilities and Misc office expenses based on units sold) Sales travel(based on units sold) Insurance office Depreciation - office equipment Depreciation for factory equipment Advertising Sales commissions(based on units sold) Factory Property taxes Maintenance for factory equipment - $ 594.000 $ 390,500 $ 159,500 $ 35,200 $ 17,600 $ 25,300 $ 15.400 $ 45,100 $ 79,200 $ 38,500 $ 59,400 $28,600 $ 93,500 Hint: you will need to distinguish between product vs. period costs and variable vs fixed costs. Please do not forget all costs for this company(not just the ones listed above in the table) based on 2,000 units above) 2. Determine the average cost of manufacturing one unit given the volume expected to be sold every year and assuming the MOH costs are allocated based on the direct labor hours per unit. Please show all calculations and round to the nearest dollar. Calculate the sales price based on your cost calculation. I would recommend that you calculate the MOH per unit first, You should calculate an Overhead rate
