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: 6,000 Direct Materials $60,000 $90,000 Direct Labour 80,000 120,000 Overhead: Indirect Materials. 25,000 37,500 Indirect Labour 40,000 50,000 Depreciation 20,000 20,000 Selling & Administrative Expenses: Sales Salaries Office Salaries 50,000 65,000 30,000 30,000 Advertising 45,000 45,000 Other 15.000 20.000 Total $365.000 $477.500
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: 6,000 Direct Materials $60,000 $90,000 Direct Labour 80,000 120,000 Overhead: Indirect Materials. 25,000 37,500 Indirect Labour 40,000 50,000 Depreciation 20,000 20,000 Selling & Administrative Expenses: Sales Salaries Office Salaries 50,000 65,000 30,000 30,000 Advertising 45,000 45,000 Other 15.000 20.000 Total $365.000 $477.500
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 15E
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