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The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one
The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: Figurines Electrical Sets Lamp Shade $9.2000000 per lamp 1.2500000 per lamp 6.0000000 per lamp Direct Labor: Variable Overhead: Fixed Overhead: Cost per lamp: 2.2500000 per lamp (4 lamps/hr.) 0.2250000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) $28.9250000 per lamp Expected increases for 20x2 When calculating projected increases round to SEVEN decimal places, $0.0000000. 1. Material Costs are expected to increase by 6.00%. 2. Labor Costs are expected to increase by 3.00%. 3. Variable Overhead is expected to increase by 6.50%. 4. Fixed Overhead is expected to increase to $285,000. 5. Fixed selling expenses are expected to be $37,000 in 20x2. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 4.50%. 7. Fixed Administrative expenses are expected to increase by $14,000. The total administrative expenses for 20x0 were $40,625.00, when 22,500 units were sold. Use the High-Low method to calculate the total fixed administrative expense. 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 4.50%. The total administrative expenses for 20x0 were $40,625.00, when 22,500 units were sold. Use the High-Low method to calculate the variable administrative expense per lamp. On the following schedule develop the following figures: 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 2- 20x2 Projected Variable Unit Cost per lamp. 3- 20x2 Projected Fixed Costs.
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