Reference no: EM131755561

Classic Cabinets has a factory that produces custom kitchen cabinets.  It has multiple product lines.

Materials and labor for the cabinets are determined by each job.  To simplify the assignment, we will assume the following average costs. 

The materials include $1,000 for the wood and other materials of $200.  Both items listed are on a per job basis.  It requires 20 hours of labor on average for a custom kitchen.  The hourly rate is $10.    The sales price will be set at a markup of 65%. 

The company estimates that it will have 16,000 direct labor hours in total for the kitchen cabinets. 

It assumes 800 units are sold on average per year.  A breakdown of estimated yearly costs related to the kitchen cabinets follows:

	Salaries- office & administrative	$ 520,000
	Salaries for factory personal	mce_markernbsp; 220,000
	Office Rent	$ 125,000
	Factory Rent	mce_markernbsp;  20,000
	Utilities and Misc office expenses(based on units sold)	mce_markernbsp;  20,000
	Travel(based on units sold)	mce_markernbsp;  24,000
	Insurance - office	mce_markernbsp;  12,000
	Depreciation - office equipment	mce_markernbsp;  40,000
	Depreciation for factory equipment	mce_markernbsp;  70,000
	Advertising	mce_markernbsp;  20,000
	Sales commissions(based on units sold)	mce_markernbsp;  45,000
	Factory Property taxes	mce_markernbsp;  10,000
	Maintenance for factory equipment	mce_markernbsp;  80,000

Please help answer the eight questions attached. Please show detailed calculations.