St. Kilda Enterprises produces parts for the electronics industry. The production manager and cost analyst reviewed the accounts for the previous month and have provided an estimated breakdown of the fixed and variable portions of manufacturing overhead.     Fixed   Variable   Total   Indirect materials $ 3,800     $ 8,800     $ 12,600     Indirect labor   2,400       16,400       18,800     Supervision   9,800       3,400       13,200     Depreciation   36,800       4,800       41,600     Maintenance   16,800       21,800       38,600     Total $ 69,600     $ 55,200     $ 124,800         Direct materials for the month amounted to $101,500. Direct labor for the month was $196,500. During the month, 12,500 units were produced. Required: a. No changes are expected in these cost relations next month. The firm has budgeted production of 16,250 units. Provide an estimate for total production cost for next month. b. Determine the cost per unit of production for the previous month and the next month.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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St. Kilda Enterprises produces parts for the electronics industry. The production manager and cost analyst reviewed the accounts for the previous month and have provided an estimated breakdown of the fixed and variable portions of manufacturing overhead.

 

  Fixed   Variable   Total  
Indirect materials $ 3,800     $ 8,800     $ 12,600    
Indirect labor   2,400       16,400       18,800    
Supervision   9,800       3,400       13,200    
Depreciation   36,800       4,800       41,600    
Maintenance   16,800       21,800       38,600    
Total $ 69,600     $ 55,200     $ 124,800    
 

 

Direct materials for the month amounted to $101,500. Direct labor for the month was $196,500. During the month, 12,500 units were produced.


Required:

a. No changes are expected in these cost relations next month. The firm has budgeted production of 16,250 units. Provide an estimate for total production cost for next month.
b. Determine the cost per unit of production for the previous month and the next month.

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