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You are doing a cost analysis for Denim Company Presented below is cost data for the cost data for the company and represents the monthly

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You are doing a cost analysis for Denim Company Presented below is cost data for the cost data for the company and represents the monthly average of the previous 12 months of data Denim monthly average Rent on plant building 99,967.00 Per Month Plant Supervisor Salary 15,000.00 Per Month Fixed plant Utility and General Maintenance Cost 75,109.00 Per Month Variable plant Utility and General Maintenance Cost 5% Of Sales Fixed Sales Staff Cost S 40,192 00 Per Month Variable Commisioned Sales 2%% Of Sales Fixed delivery Truck Cost 4,875.00 Per Month Variable delivery Truck Cost 1% Of Sales Direct Material Cost are 21 37 Per Unit Direct Labor Cost are 10.04 Per Unit Average monthly sales of 21983 units at $50.47 per unit. 1) Classify each of the cost as either fixed or variable cost. 2) Classify each of the cost as either product or period cost. 3) Classify each product cost as either direct material, direct labor or manufacturing overhead. 4) What is the average monthly Prime Cost using cost data presented? 5) What is the average monthly Conversion Cost using cost data presented? Presented below is actual cost data for the company for one of its lines of production. Month Units Produced Actual Cost January 20,907 $ 840,133 February 23,070 $ 899,976 March 15,040 $ 705,002 April 16,972 S 750,001 May 10,022 S 449,848 June 19,050 S 780,226 Using the High-Low Method answer the following questions. 7) What is the estimated variable cost per unit. Answer with 4 digits of precision and use that number for all calculations 8) What is the fixed cost estimate. 8) In July the company anticipates that it will produce 17510 units. What is the expected cost? HINT If units produced in August were 20,000 then the estimated cost will be 794,067.00

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