Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Toledo Toy Company incurred the following costs during 20x1: Direct Materials 5,000,000 Direct Labor 3,500,000 Manufacturing Overhead Utilities (primarily electricity) 250,000 Depreciation Plant and Equipment

Toledo Toy Company incurred the following costs during 20x1:

Direct Materials 5,000,000
Direct Labor 3,500,000
Manufacturing Overhead
Utilities (primarily electricity) 250,000
Depreciation Plant and Equipment 350,000
Insurance 260,000
Supervisory Salary 470,000
Property Taxes 330,000
Selling Cost:
Advertising 315,000
Sales Commission 145,000
Administrative Costs:
Salaries of top management 580,000
Office Supplies 70,000
Depreciation on Building and Equipment 140,000

The company sold all of its products manufactured during the year. Depreciation is on a straight-line basis. During 20x1, the company operated at about half of its capacity, due to a slowdown in the economy. Prospects for 20x2 are slightly better. The marketing manager, forecasts a 30 percent growth in sales over the 20x1 level.

TOTAL VARIABLE COST in 20x1 amount to _________________.

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

Step: 3

blur-text-image

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

Governmental Accounting

Authors: Steven M. Bragg

2022nd Edition

1642210781, 978-1642210781

More Books

Students also viewed these Accounting questions

Question

=+3. What level of candor are decision makers willing to receive?

Answered: 1 week ago