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The industrial plastics company manufactures three different models, called L-6, L-8 and L-12. For the year, the budgeted data regarding the next prime cost of

The industrial plastics company manufactures three different models, called L-6, L-8 and L-12. For the year, the budgeted data regarding the next prime cost of the three models is as follows:

 

Model 

Costo of material direct  

Direct Labor Cost

Total por Model 

L6 

40,000 

60,000 

100,000 

L8 

46,000 

42,000 

88,000 

L12 

50,000 

45,000 

95,000 

TOTAL 

136,000 

147,000 

283,000 

  

Regarding common manufacturing costs, the budget indicated the following amounts:

Direct Labor $17,000

Overtime Bonus $11,200

Factory Supplies $11,500

Factory Taxes $1,800

Fire Insurance $2,300

Heating and Lighting $2,000

 

Factory Building Depreciation $13,200

Machinery Depreciation $12,700

Factory Office Costs $3,200

Gas for Machinery $24,100

Total    $99,000.00

 

 Using the above information do the following:

• Prepare a chart or table illustrating the distribution of common manufacturing costs based on the cost of raw materials and showing, for each of the models, the cost structure, gross profit, and selling price, assuming that the gross profit over the cost of production for each model is: L-6 20%, L-8 30% and L-12 25%.

 

• Prepare a second chart or table illustrating the distribution of common manufacturing costs based on direct labor cost and showing, for each of the models, the cost structure, gross profit, and selling price. , assuming that the gross profit over the cost of production for each model is: L-6 20%, L-8 30% and L-12 25%.

 

• Create a third chart or table illustrating the distribution of common manufacturing costs on a prime cost basis and showing, for each of the models, the cost structure, gross profit, and selling price, assuming profit gross over production cost for each model is: L-6 20%, L-8 30% and L-12 25%.

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