Dreamworks Ltd. produces dream spheres. Projected sales and production for 2021 are as follows: 2021 Quarter 4. (Jan - Mar) (Apr- Jun) (Jul-Sep) (Oct- Dec) Expected Sales (units) 30,000 33,000 38,000 35,000 Unit Selling Price $75 $75 $75 $75 Expected Production (units) 30,300 33,500 37,700 35,100 Manufacturing overhead consists of variable costs of $9 per unit produced and annual fixed costs of $2,000,000. Selling and administrative expenses consist of sales commissions of 15% of sales and fixed costs of $248,000 per quarter.

Dreamworks Ltd. produces dream spheres. Projected sales and production for 2021 are as follows: 2021 Quarter 4. (Jan - Mar) (Apr- Jun) (Jul-Sep) (Oct- Dec) Expected Sales (units) 30,000 33,000 38,000 35,000 Unit Selling Price $75 $75 $75 $75 Expected Production (units) 30,300 33,500 37,700 35,100 Manufacturing overhead consists of variable costs of $9 per unit produced and annual fixed costs of $2,000,000. Selling and administrative expenses consist of sales commissions of 15% of sales and fixed costs of $248,000 per quarter.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 4CE: Refer to Cornerstone Exercises 2.2 and 2.3. Next year, Pietro expects to produce 50,000 units and...

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