Reference no: EM132609891

Questions -

Q1) Rustic Doors produces door jams. April production costs are below:

Door Jams produced 70,000

Direct material (variable) $20,000

Direct labor (variable) 40,000

Supplies (variable) 20,000

Supervision (fixed) 27,200

Depreciation (fixed) 24,600

Other (fixed) 3,600

In May, Rustic Doors expects to produce 100,000 door jams. Assuming no structural changes, what is Rustic's production cost per door Jam for May?

Q2) Superior Chairs is preparing a production cost budget for May. Actual costs in April for 120 chairs were:

Materials cost $4,590

Labor cost 2,970

Rent 1,500

Depreciation 2,500

Other fixed costs 3,200

Materials and labor are the only variable costs. If production and sales are budgeted to change to 150 chairs in May, how much is the expected total variable cost on the May budget?

Q3) Pretty Pictures organization has the following sales, variable cost, and fixed cost. If sales increase by $10,000 then their profit increases/decreases by how much?

Sales $50,000

Variable Costs $7,700

Fixed Costs $30,000