Reference no: EM132977654
Question - The Wantu Hotel, a luxurious hospitality establishment, sold 145,000 rooms in a given year. The management of Wantu incurred the following cost data:
Direct Materials $80,000
Labor $120,000
Indirect Materials $40,000
Administrative $40,000
Other Fixed Costs $30,000
TOTAL $310,000
Based on the cost structure, the management of Wantu has set next year's cost structure as follows:
- All of direct materials will be considered as VC.
- 80.00% of labor costs will be classified as VC and 20.00% as FC.
- 40.00% of indirect materials will be classified as FC and 60.00% as VC.
- All of administrative costs and other fixed costs will be considered as FC.
According to the cost projection for the next year, calculate Total Variable Costs (VC), Total Fixed Costs (FC), Unit Variable Cost (UVC). Unit Fixed Cost (UFC), and Unit Mixed Cost (UMC) respectively.
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