Brawny Generators is in the process of preparing a production cost budget for August. Actual costs...
Brawny Generators is in the process of preparing a production
cost budget for August. Actual costs in July for the production of
60 generators were:
| Materials cost | $ | 5,200 | |
| Labor cost | 2,600 | ||
| Rent | 1,200 | ||
| Depreciation | 1,700 | ||
| Other fixed costs | 4,600 | ||
| Total | $ | 15,300 | |
Materials and labor are the only variable costs. If production and
sales are budgeted to increase to 70 generators in August, how much
is the fixed cost per unit on the August budget?
Multiple Choice
-
$107.14
-
$125.00
-
$218.57
-
$130.00
-
None of these answer choices is correct.
Homework Answers
Solution:
Option A ($ 107.14 ) is the correct answer
Computation of fixed cost per generator is shown below :
Rent = $ 1,200
Depreciation = $ 1,700
Other fixed costs = $ 4,600
Total fixed costs = $ 7,500 ($ 1,200 +$ 1,700 +$ 4,600)
Number of generators = 70 generators
Fixed cost per generator = Total fixed costs / Number of generators
Fixed cost per generator = $ 7,500 / 70 generators
Fixed cost per generator = $ 107.14
Conclusion : From the above we can understand that OPTION A satisfies the given requirement in the question whereas remaining Options B,C,D, E do not satisfy the given requirement in question.
Thankyou !!!!!
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Brawny Generators is in the process of preparing a production
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Command Generators is in the process of preparing a production cost budget for August. Actual costs...
Command Generators is in the process of preparing a production cost budget for August. Actual costs in July for the production of 60 generators were: Materials cost $ 5,200 Labor cost 2,600 Rent 1,200 Depreciation 1,700 Other fixed costs 4,600 Total $ 15,300 Materials and labor are the only variable costs. If production and sales are budgeted to increase to 70 generators in August, how much is the expected total cost on the August budget? Multiple Choice $17,850 $16,600 $9,100...
Santiago’s Salsa is in the process of preparing a production cost budget for May. Actual costs...
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Santiago’s Salsa
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Labor cost (variable)
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Depreciation (fixed)
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Other (fixed)
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Budget Report
Assembling Department
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Difference
Manufacturing Costs
Budget
Actual
Favorable
Unfavorable
Variable costs
Direct materials
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$49,740
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Direct labor
54,280
51,480
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Favorable
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26,260
300
Unfavorable
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21,940
480
Favorable
Utilities
14,750
14,580
170
Favorable
Maintenance
5,900
6,120
220
Unfavorable
Total variable
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24,000
Production
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Labor cost (variable)
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units. Actual unit component costs incurred during August include
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Required:
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(Indicate the effect of each variance by selecting "F" for
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Direct materials
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$49,740
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220
Unfavorable
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