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Summit Corporation manufactures machines for the apparel industry. The production manager and cost analyst reviewed the accounts for the previous quarter and have provided an
Summit Corporation manufactures machines for the apparel industry. The production manager and cost analyst reviewed the accounts for the previous quarter and have provided an estimated breakdown of the fixed and variable portions of manufacturing overhead: Administration and supervision Engineering and indirect labor Indirect supplies Facilities cost Repair and maintenance Total Fixed $31,050 6,000 8,200 Variable $10,100 Total $ 41,150 59,200 65,200 26,900 35,100 133,600 58,500 12,000 145,600 76,600 135,100 $ 237,350 $ 184,800 $422,150 Direct materials for the quarter amounted to $354,500. Direct labor for the quarter was $715,500. During the quarter, 9,500 units were produced. Required: a. No changes are expected in these cost relations next quarter. The firm has budgeted production of 12,350 units. Provide an estimate for total production cost for next quarter. b. Determine the cost per unit of production for the previous quarter and the estimated cost per unit next quarter Complete this question by entering your answers in the tabs below. Required A Required B No changes are expected in these cost relations next quarter. The firm has budgeted production of 12,350 units. Provide an estimate for total production cost for next quarter Note: Do not round intermediate calculations. Required A Required B No changes are expected in these cost relations n- estimate for total production cost for next quarter. Note: Do not round intermediate calculations. Cost Item Direct materials Next Quarter's Cost Direct labor Variable overhead Fixed overhead Total costs Require Complete this question by entering your Required A Required B Determine the cost per unit of production for the Note: Do not round intermediate calculations. R Cost per Unit Last quarter Next quarter
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