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venicies. variable and fixed costs related to installation activities for the most recent month (July) are listed below. Item Number of windshields installed 1,550 Variable

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venicies. variable and fixed costs related to installation activities for the most recent month (July) are listed below. Item Number of windshields installed 1,550 Variable expenses: Direct materials 314,650 $ $ 48.050 Direct labour (1 hour per installation) Indirect materials 18,600 Fixed expenses: Installation supervisor's wages Installation scheduler's wages Warehouse expenses $ 7,750 1.550 9,300 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 Fored expenses Installation supervisor's wages Installation scheduler's wages Warehouse expenses 2. Management expects that 1.750 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 unlt" answers to two decimal places.) Item August (Total August Per Cost) Unit 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 answers and double click the box with the question mark to empty the box for a wrong answers.) Direct material costs per unit could decrease if quantity discounts are received from the manufacturer for larger order quantities. Direct material costs could increase if quantity discounts currently being received are lost if order quantitles decrease significantly . Direct labour costs per unit could increase if activity levels Increase and Installations have to be completed using more expensive overtime hours. 2 Direct labour costs per unit could Increase if activity levels decrease and less experienced, and lower pald, Installers are laid off. , . 2 Direct labour costs per unit could decrease as the number of installations increases due to the effects of leaming (L.e., the time required for each installation may decrease with experience). 2 Direct material costs per unit could increase of quantity discounts are received from the manufacturer for larger order quantities. 2 Direct material costs could decrease if quantity discounts currently being received are lost if order quantities decrease slanificantlv

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