User Account

All Pages

The projected increases or decreases to current costs

Assignment Help Accounting Basics
Reference no: EM13304313

The projected cost of a lamp is calculated based upon the projected increases or decreases to  current costs. The present costs to manufacture one lamp are:

Lamp Kit: $16.0000000 per lamp
Direct Labor: 2.0000000 per lamp (4 lamps/hr.)
Variable Overhead: 2.0000000 per lamp
Fixed Overhead: 10.0000000 per lamp (based on normal capacity of 25,000 lamps)

Cost per lamp: $30.0000000 per lamp

Expected increases for 20x2
When calculating projected increases round to TWO ($0.00) decimal places.

1. Material Costs are expected to increase by 3.50% .

2. Labor Costs are expected to increase by 3.50%.

3. Variable Overhead is expected to increase by 3.00%.

4. Fixed Overhead is expected to increase to $275,000.

5. Fixed Administrative expenses are expected to increase to $44,000.

6. Variable selling expenses (measured on a per lamp basis) are expected to increase
by 3.00%.

7. Fixed selling expenses are expected to be $29,000 in 20x2.

8. Variable administrative expenses (measured a per lamp basis) are expected to
increase by 2.00%.

On the following schedule develop the following figures:
1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp.

2- 20x2 Projected Variable Unit Cost per lamp.

3- 20x2 Projected Fixed Costs.

Reference no: EM13304313

Questions Cloud

What do you think of the junk food tax : What do you think of the “junk food” tax? Do you think it is a good method of deterring people (parents and kids) from purchasing junk food? If you disagree with the “junk food” tax, what other solution(s) do you have for the high rate of obesity in ..
A precise hurdle rate at any business or industry : What are some obstacles to discerning a precise hurdle rate at any business or industry? In what ways might you adjust your hurdle-rate calculations to compensate for "real-world" imprecision? What
All work need to be about advancement : Do we expect everyone to be coming to work for personal fulfillment and growth? What do we do with the employee who is just there to work--do his or her 8 hours and go home to their families? Why does all work need to be about "advancement?"
Compute the current ratio : Using the following data, compute the current ratio. Return on sales, asset turnover, and return on equity.
The projected increases or decreases to current costs : The projected cost of a lamp is calculated based upon the projected increases or decreases to  current costs. The present costs to manufacture one lamp are:
What do you think of the junk food tax : What do you think of the “junk food” tax? Do you think it is a good method of deterring people (parents and kids) from purchasing junk food?
What could you do to reduce the risk for all of you : If you want to stay in Canada, and your grandparents, who have retired to Provence, receive a Canadian pension of C$1100 each, what could you do to reduce the risk for all of you?
Diversity is an important value in business : Diversity is an important value in business because it appreciates each individual people and behaving in such a way that we, as a person, respect others differences about things.
Does such an agreement make you both better off : If you need 350 gallons to survive the winter, how much difference does the potential price variance make to your heating bills?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Computation of bond liability

Messier Inc. manufactures cycling equipment. Recently the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company's bikes.

  What amount if any of expense should be reflected

In January 2011, Post, Inc. estimated that its year-end bonus to executives would be $720,000 for 2011. The actual amount paid for the year-end bonus for 2010 was $660,000.

  Calculate the expected net present value

Calculate the expected net present value (NPV) and the standard deviation of the NPV for the project to buy the English lignite mines if £900m is taken to be the initial cash outflow.

  Introduction to statement of cash flows

Discount Sales sells some used store fixtures. The acquisition cost of the fixtures is $12,500, the accumulated depreciation on these fixtures is $9,750 at the time of sale. The fixtures are sold for $4,500.The value of this transaction in the Inv..

  Please explain the nuances of the $25,000 rule?

Is rental real estate subject to the Passive Loss limitations? Are there any important exceptions?

  Find out the price of the bonds

1. Determine the price of the bonds at the time they were issued. 2. Assume the bonds were issued at a price of $850,000. Determine the amount of interest expense to be reported on June 30, 2008, December 31, 2008, and June 30, 2009.

  Report on tax return for current year

There is no minimum gain related to the nonrecourse liability. During the year the partnership incurs a $120,000 loss. How much of the loss can Karen report on her tax return for the current year?

  Budget for production period

Antawn expects to sell 42,000 units of finished goods this period-How many units must he budget for production this period

  Calculate the variances

For the week in question, Marcia actually produced 1,050 units. In doing so, she purchased 4,000 pounds of material at a cost of $41,000 and used 4,100 pounds of materials. Direct laborers worked 3,000 hours and were paid $16,950. Variable overhea..

  Find the present value of the ordinary annuities

Find the present value of the following ordinary annuities: $400 per year for 10 years at 10% $200 per year for 5 years at 5%, $400 per year for 5 years at 0%.

  Inventory of materials

One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. At the beginning of Month 1, 3,200 lb. of materials were on hand. Purchases o..

  Explain any irregularities in the apollo shoes case

As corporate controller for Apollo Shoes, you are tasked to find and explain any irregularities in the Apollo Shoes Case.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd