Bellfont Company produces door stoppers. August production costs are below:
Door Stoppers produced 76,000
Direct material (variable) $20,000
Direct labor (variable) 40,000
Supplies (variable) 20,000
Supervision (fixed) 26,100
Depreciation (fixed) 24,000
Other (fixed) 4,100
1.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
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$4,890
|
|
Labor cost
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2,650
|
|
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 increase to 100 chairs in August, how much is the expected total variable cost on the August budget?
6.to be $20 per unit. Michael Co. offers to pay $24,600 to buy 730 units from Carry-ALL. Total fixed costs are $7,000 per year. This offer does not affect Carry-ALL's other planned operations. The incremental revenues for this situation are?