Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one

image text in transcribedimage text in transcribed

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Economics Theory Applications and Cases

Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield

8th edition

978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777

More Books

Students also viewed these Accounting questions

Question

Tell me about yourself.

Answered: 1 week ago