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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 lampDirect Labor: 2.0000000 per lamp (4 lamps/hr.)Variable Overhead: 2.0000000 per lampFixed Overhead: 10.0000000 per lamp (based on normal capacity of 25,000 lamps)Cost per lamp: $30.0000000 per lampExpected increases for 20x2
When calculating projected increases round to TWO ($0.00) decimal places.
1. Material Costs are expected to increase by 5.50%.2. Labor Costs are expected to increase by 2.50%.3. Variable Overhead is expected to increase by 6.50%.4. Fixed Overhead is expected to increase to $290,000.5. Fixed Administrative expenses are expected to increase to $56,000.6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 4.50%.7. Fixed selling expenses are expected to be $37,000 in 20x2.8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 5.00%.
On the following schedule develop the following figures:
a- 20x2 Projected Variable Manufacturing Unit Cost of a lamp.b- 20x2 Projected Variable Unit Cost per lamp.c- 20x2 Projected Fixed Costs.
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