Wicked Mikes Manufacturing has a factory that produces kitchen cabinets. The company has other product lines.

Materials and labor for the cabinets are determined by each job. To simplify the assignment, we will assume the following average costs

The following information highlights Wicked Mikes cost structure for 2021.

• The materials include $6,500 for the wood and other materials on a per job basis.
• It requires 45 hours of labor on average for the cabinetry. The hourly rate is $12.
• The sales price will be set at a markup of 65%.
• The company estimates that it will have 90,000 direct labor hours in total for the cabinets.
• It assumes 2000 units are sold on average per year.

A breakdown of estimated yearly costs for the 2000 units follows:

	Salaries- office & administrative					$ 650,000
	Salaries for factory supervisor, janitor and security					$ 400,000
	Office Rent					$ 350,000
	Factory Rent					$ 100,000
	Office utilities and Misc office expenses(based on units sold)					$ 45,000
	Sales travel(based on units sold)					$ 24,000
	Insurance - office					$ 60,000
	Depreciation - office equipment					$ 40,000
	Depreciation for factory equipment					$ 85,000
	Advertising					$ 220,000
	Sales commissions(based on units sold)					$ 450,000
	Factory Property taxes					$ 16,000
	Maintenance for factory equipment					$ 80,000
Hint: you will need to distinguish between product vs. period costs and variable vs fixed costs. Please do not forget all costs for this company(not just the ones listed above in the table)

General requirements:

A schedule will be created for each of the following questions. Use a new worksheet (not workbook) to answer each question.

All schedules should be included in excel. Your spreadsheets must contain formulas and referring numbers. Not using formulas will result in a minimum one letter-grade reduction. Linking the schedules is required. Your spreadsheet must be professional and include the following items: report titles, formatted numbers, single and double underlines, and correct spelling. Every number should be labeled clearly so the reader understands what numbers represent. If you are unsure about the format, please review the textbook for a similar report or ask!!!

Detailed Requirements:

1. Please identify and calculate totals for the following classifications on ALL costs listed on the first page: variable and fixed costs; product and period costs. The schedule should contain numbers for each area on a yearly basis. For the variable cost, also show them on a per-unit basis. (must be calculated based on 2000 units above). I will go over the recommended format in chat.

2. Determine the average cost of manufacturing one project given the units expected to be sold every year and assuming the MOH costs are allocated based on the direct labor hours per unit. Please show all calculations and round to the nearest dollar. Calculate the sales price based on your cost calculation. I would recommend that you calculate the MOH per project first. You should calculate an Overhead rate.

Need in excel with formulas