1 Bellfont Company produces door stoppers. August production costs are below:
Door Stoppers produced 78,000
Direct Material (Variable) $20,000
Direct Labor (Variable) 40,000
Supplies (Variable) 20,000
Supervision (Fixed) 25,100
Depreciation (Fixed) 23,300
Other (Fixed) 3,500
In September, Bellfont expects to produce 100,000 door stoppers. Assuming no structural changes, what is Bellfont's production cost per door stopper for September?
2. Aaron's chairs is in the process of preparing a production cost budget for August. Actual costs in July for 120 chairs were:
Materials cost $4,500
Labor cost 2,660
Rent 1,500
Depreciation 2,500
Other fixed costs 3,200
Materials and labor are the only variable costs. If production and sales are budgeted to change to 130 chairs in August, how much is the expected total variable cost on the August budget?
3. Stellar Company has the following sales, variable costs and fixed cost. If sales increase by $10,000 then their profit increases/decreases by how much?
Sales $50,000
Variable Costs $ 7,600
Fixed Costs $29,000
4. Susan is trying to decide whether or not to attend college during the next 12-week session. She has the following options:
- Attend college full-time at cost of $1,200
- Attend college part-time at a cost of $700 and work part-time earning $1,900
- Work full-time earning $4,900
What is Susan's incremental profit if she chooses option 3 over option 2?