Urban Auto Glass specializes in the repair and replacement of windshields for passenger vehicles. Variable and fixed costs related to installation activities for the most recent month (July) are listed below. Item Number of windshields installed 1,750 Variable expenses: Direct materials $ 357,000 Direct labour (1 hour per installation) 49,800 Indirect materials 19, 250 Fixed expenses: Installation supervisor's wages $ 8,750 Installation scheduler's wages 5,250 Warehouse expenses 10,500 Required: 1. Calculate the per unit amounts for each of the variable expense and fixed expense items in July. Per Unit Item Variable expenses Direct materials Direct labour (1 hour per installation) Indirect materials Fixed expenses Installation supervisor's wages Installation scheduler's wages Warehouse expenses 2. Management expects that 1,950 windshields will be installed in August and that this level of activity is within the relevant range for all variable and fixed expenses. a&b-1. Calculate the total expense and per unit amounts for each of the variable and fixed cost items above. (Round "per unit answers to 2 decimal places.) August (Total August Per Cost) Unit Item Variable expenses: Direct materials Direct labour (1 hour per installation) Indirect materials Fixed expenses: Installation supervisor's wages Installation scheduler's wages Warehouse expenses b-2. Not available in Connect. 3. Identify some factors that might cause variable costs per unit to change if the actual level of activity in a given month falls above or below the relevant range. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) 2 Direct material costs per unit could decrease if quantity discounts are received from the manufacturer for larger order quantities. 2 Direct material costs could increase if quantity discounts currently being received are lost if order quantities decrease significantly. 2 Direct labour costs per unit could increase If activity levels increase and installations have to be completed using more expensive overtime hours. Direct labour costs per unit could increase if activity levels decrease and less experienced, and lower paid, Installers are laid off. Direct labour costs per unit could decrease as the number of installations increases due to the effects of learning ie, the time required for each installation may decrease with experience). Direct material costs per unit could increase if quantity discounts are received from the manufacturer for larger order quantities. Direct material costs could decrease if quantity discounts currently being received are lost if order quantities decrease significantly