Conglomco corporation manufactures and sells widgets for

Cost Analysis

Solve Problems 1 and 2 based on the information in the following scenario.

Conglomco Corporation manufactures and sells widgets for $400 per unit. The total cost of production for 1,200 widgets is given below.

Problem 1. Differentiate each cost as being either variable or fixed and either product or period.

Costs	Cost by Behavior ($)		Cost by Function ($)
Costs	Variable	Fixed	Product	Period
Plastic for casing: $12,000.
Wages/assembly: $55,000.
Facility property taxes: $5,000.
Accounting staff salaries: $40,000.		40,000.		40,000.
Stands (1,200 outsourced): $22,000.
Rental equipment/sales staff: $6,000.
Salaries/management: $150,000.
Annual maintenance fee: $12,000.
Commissions: $12 per unit.
Depreciation/machinery: $12,000.

Continue to Problem 2.
Problem 2. Compute the manufacturing cost per widget.

Cost to Manufacture Each Widget (for year ended December 31, 2012)
Item	Total Cost ($)	Cost per Unit ($)
Variable manufacturing costs:




Fixed manufacturing costs:




Total manufacturing cost:

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