Question z Answer saved Cost Formulas Marked out of 1.45 Material A Material B Material C Cutting labor Shaping labor Finishing labor Hag question $25/pound $100/gallon $45/hour $55/hour $60/ hour Saved to this PC Shorewood Manufacturing produces a single product requiring the following directmaterial and direct labor: Cost per Unit of Input Required Amount per Unit of Product $40 / pound 10 ounces Homework 6 8 ounces 0.3 gallon 30 minutes 15 minutes 45 minutes Variable Manufacturing overhead consists of indirect material, $0.60 per unit of product; indirect labor, $1,000 per month plus $0.70 per unit of product; factory maintenance, $14,000 per year plus $0.55 per unit of product; factory depreciation, $15,000 per year; and annual factory property taxes, $8,000. Selling and administrative expenses include the salaries of a sales manager, $30,000 per year; an office manager, $18,000 per year; and two salespersons, each of whom is paid a base salary of $11,000 per year and a commission of $3 per unit sold. Advertising and promotion of the product are done through a year-round media package program costing $1,000 per week. a. Analyze all cost and expense factors to determine a general formula (based on units of production) for total cost. Round variable cost per unit answers to two decimal places, if applicable.
Question z Answer saved Cost Formulas Marked out of 1.45 Material A Material B Material C Cutting labor Shaping labor Finishing labor Hag question $25/pound $100/gallon $45/hour $55/hour $60/ hour Saved to this PC Shorewood Manufacturing produces a single product requiring the following directmaterial and direct labor: Cost per Unit of Input Required Amount per Unit of Product $40 / pound 10 ounces Homework 6 8 ounces 0.3 gallon 30 minutes 15 minutes 45 minutes Variable Manufacturing overhead consists of indirect material, $0.60 per unit of product; indirect labor, $1,000 per month plus $0.70 per unit of product; factory maintenance, $14,000 per year plus $0.55 per unit of product; factory depreciation, $15,000 per year; and annual factory property taxes, $8,000. Selling and administrative expenses include the salaries of a sales manager, $30,000 per year; an office manager, $18,000 per year; and two salespersons, each of whom is paid a base salary of $11,000 per year and a commission of $3 per unit sold. Advertising and promotion of the product are done through a year-round media package program costing $1,000 per week. a. Analyze all cost and expense factors to determine a general formula (based on units of production) for total cost. Round variable cost per unit answers to two decimal places, if applicable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question z Answer saved
Cost Formulas
Marked out of 1.45
Material A
Material B
Material C
Cutting labor
Shaping labor
Finishing labor
Hag question
$25/pound
$100/gallon
$45/hour
$55/hour
$60/ hour
Saved to this PC
Shorewood Manufacturing produces a single product requiring the following directmaterial and direct labor:
Cost per Unit of Input Required Amount per Unit of Product
$40 / pound
10 ounces
Homework 6
8 ounces
0.3 gallon
30 minutes
15 minutes
45 minutes
Variable
Manufacturing overhead consists of indirect material, $0.60 per unit of product; indirect labor, $1,000 per month plus $0.70 per unit of product; factory maintenance,
$14,000 per year plus $0.55 per unit of product; factory depreciation, $15,000 per year; and annual factory property taxes, $8,000. Selling and administrative expenses
include the salaries of a sales manager, $30,000 per year; an office manager, $18,000 per year; and two salespersons, each of whom is paid a base salary of $11,000 per
year and a commission of $3 per unit sold. Advertising and promotion of the product are done through a year-round media package program costing $1,000 per week.
a. Analyze all cost and expense factors to determine a general formula (based on units of production) for total cost.
Round variable cost per unit answers to two decimal places, if applicable.
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