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Lurvey, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2017. E: (Click
Lurvey, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2017. E: (Click the icon to see the account information.) Lurvey, Inc., produced 80,000 units of product in 2017. Lurvey's management is estimating costs for 2018 on the basis of 2017 numbers. The following additional information is available for 2018. (Click the icon to see the additional information.) Read the requirements. 2017 2018 Variable unit Total cost X Variable % of cost / Total units prod. 1x 100% + % increase = cost in 2018 Data Table Requirements Account Direct materials Classification All variable $ All variable Direct manufacturing labor 1. Prepare a schedule of variable, fixed, and total manufacturing costs for each account category in 2018. Estimate total manufacturing costs for 2018. 2. Calculate Lurvey's total manufacturing cost per unit in 2017, and estimate total manufacturing cost per unit in 2018. 3. How can you obtain better estimates of fixed and variable costs? Why would these better estimates be useful to Lurvey? Power Amount 300,000 220,000 20,000 64,000 70,000 60,000 88,000 All variable Supervision labor 25% variable Materials-handling labor 40% variable Print Done Maintenance labor 40% variable Depreciation 0% variable Now calculate the variable unit cost in 2018. (Round the unit cost to the nearest cent. Complete all answer boxes. If an account does not have a variable unit cost. enter 0.) i Data Table Variable unit Account cost in 2018 Direct materials Account Classification Amount Direct manufacturing labor Direct materials Power All variable $ All variable Direct manufacturing labor Supervision labor Power 300,000 220,000 20,000 64,000 70,000 All variable 25% variable 40% variable Materials-handling labor Maintenance labor Depreciation Rent, prop. taxes, and admin. Supervision labor Materials-handling labor Maintenance labor Depreciation Rent, property taxes, and administration 40% variable 60,000 0% variable 0% variable 88,000 120,000 Enter any number in the edit fields and then click Che
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