Assignment

A company has the following costs, and only these costs, in November:

• Monthly Rent on Plant = $900
• Manufacturing Overhead = $200 (50% fixed, 50% variable)
• Direct Materials = $800
• Direct Labor = $80
• Units produced and sold in November = 100, within the company's relevant range.

Units produced and sold in November = 100, within the company's relevant range

8. What is the total fixed cost? $1000

9. What is the total variable cost?

10. What is the unit fixed cost?

11. What is the unit variable cost?

The company is making forecasts for December. Sales and production are anticipated to double. All activity would remain within the relevant range.

12. What is the total projected fixed cost for December?

13. What is the total projected variable cost for December?

14. What is the projected unit fixed cost for December?

15. What is the projected unit variable cost for December?

1.2Manufacturing Costs -

1. You will give examples for a manufacturer that you choose. If you'd like, you can look up the financial statements for this manufacturer online to review their accounts, but that is not required; nor are dollar amounts required. Use the cost classifications learned this week and the cost glossary to assist you. State the name of manufacturer you will be using in this exercise. If it is not well known, describe what that manufacturer produces.

2. List 2 period expenses that would likely be fixed.

3. List 1 period expense that would likely be variable.

4. List 2 types of direct materials.

5. List 1 type of direct labor cost.

6. State which specific items would make up a prime cost for this company. You may reuse items from above.

7. List one indirect material cost.

8. List one indirect labor cost.

9. Looking only at the costs you have listed above, state which ones are manufacturing overhead.

10. Looking only at the costs you have listed above, what other cost besides manufacturing overhead is included in conversion costs?

11. List one cost not mentioned above that is manufacturing overhead AND state whether that cost is fixed, variable, or mixed. Explain as needed.

12. Within this company or any manufacturing company, what are the 3 general terms for costs of production?

Attachment:- Checkwork-Interactive-Budgets.rar