Hemlock Nutritional Supplements (HNS) provides you with the following accounting records on manufacturing cost for the most recent month: Direct materials Direct labor Variable overhead $ 126,000 92,400 Production was 60,000 units (cases). Fixed manufacturing overhead was $144,000. same. 105,000 For the coming year, costs are expected to increase as follows: direct materials costs by 40 percent, excluding any effect of volume changes; direct labor by 22 percent; and fixed manufacturing overhead by 29.5 percent. Variable manufacturing overhead per unit is expected to remain the Required: Prepare a cost estimate for a volume level of 42,000 units of product in the upcoming month. Determine the costs per unit for the most recent month and for the upcoming month.
Hemlock Nutritional Supplements (HNS) provides you with the following accounting records on manufacturing cost for the most recent month: Direct materials Direct labor Variable overhead $ 126,000 92,400 Production was 60,000 units (cases). Fixed manufacturing overhead was $144,000. same. 105,000 For the coming year, costs are expected to increase as follows: direct materials costs by 40 percent, excluding any effect of volume changes; direct labor by 22 percent; and fixed manufacturing overhead by 29.5 percent. Variable manufacturing overhead per unit is expected to remain the Required: Prepare a cost estimate for a volume level of 42,000 units of product in the upcoming month. Determine the costs per unit for the most recent month and for the upcoming month.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Hemlock Nutritional Supplements (HNS) provides you with the
following accounting records on manufacturing cost for the
most recent month:
Direct materials
Direct labor
Variable overhead
$ 126,000
same.
105,000
92,400
Production was 60,000 units (cases). Fixed manufacturing
overhead was $144,000.
For the coming year, costs are expected to increase as follows:
direct materials costs by 40 percent, excluding any effect of
volume changes; direct labor by 22 percent; and fixed
manufacturing overhead by 29.5 percent. Variable
manufacturing overhead per unit is expected to remain the
Required:
Prepare a cost estimate for a volume level of 42,000 units of
product in the upcoming month.
Determine the costs per unit for the most recent month and for
the upcoming month.
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