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. TII Fixed $ 2,000 1,500 8,000 35,000 15,000 $ 61,500 Variable Total Indirect materials Indirect labor Supervision Depreciation Maintenance $ 7,000 15,500 2,500 3,000 20,000 48,000 $ 9,000 17,000 10,500 38,000 35,000 $ 109,500 Total Direct materials for the month amounted to $92,500. Direct labor for the month was $187,500. 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.
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. TII Fixed $ 2,000 1,500 8,000 35,000 15,000 $ 61,500 Variable Total Indirect materials Indirect labor Supervision Depreciation Maintenance $ 7,000 15,500 2,500 3,000 20,000 48,000 $ 9,000 17,000 10,500 38,000 35,000 $ 109,500 Total Direct materials for the month amounted to $92,500. Direct labor for the month was $187,500. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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.
TII
Fixed
$ 2,000
1,500
8,000
35,000
15,000
$ 61,500
Variable
Total
Indirect materials
Indirect labor
Supervision
Depreciation
Maintenance
$ 7,000
15,500
2,500
3,000
20,000
48,000
$ 9,000
17,000
10,500
38,000
35,000
$ 109,500
Total
Direct materials for the month amounted to $92,500. Direct labor for the month was $187,500. 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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