Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit Upper Limit 4,000 Production (# of boxes) Production Costs: Direct Materials. Direct Labour Overhead: 6,000 $60,000 $90,000 80,000 120,000 Indirect Materials.. Indirect Labour. Depreciation .. Selling & Administrative Expenses: Sales Salaries. Office Salaries Advertising. Other .. Total 25,000 37,500 40,000 50,000 20,000 20,000 50,000 65,000 30,000 30,000 45,000 45,000 _15.000 $365,000 20.000 $477,500 Required: a) Classify each cost element as either fixed, variable, or mixed b) Calculate: ) the variable production cost per unit and the total fixed production overhead.
Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit Upper Limit 4,000 Production (# of boxes) Production Costs: Direct Materials. Direct Labour Overhead: 6,000 $60,000 $90,000 80,000 120,000 Indirect Materials.. Indirect Labour. Depreciation .. Selling & Administrative Expenses: Sales Salaries. Office Salaries Advertising. Other .. Total 25,000 37,500 40,000 50,000 20,000 20,000 50,000 65,000 30,000 30,000 45,000 45,000 _15.000 $365,000 20.000 $477,500 Required: a) Classify each cost element as either fixed, variable, or mixed b) Calculate: ) the variable production cost per unit and the total fixed production overhead.
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
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