Q#-1  HASF Corporation began operations at the beginning of the current year. one of the year company product a compressor sells for 370 per unit’s information related to the current year activities follows Variable cost per unit Direct material ​​​​40 Direct labor ​​​​​74 Manufacturing overhead ​​​96 Annual fixed cost Manufacturing cost ​​​​1,200,000 Selling and administrative ​​​1,720,000 Sales and production Sales in units ​​​​​20,000 Production ​​​​​24,000 Required - Cost of the December 31 finished goods inventory Net income for the current year Dec 31 If next year production decrease to 22,500 units and general cost behavior patterns do not change what is the likely effect on • The direct labor cost of 74 per units? why? • The fixed manufacturing overhead of 1,200,000?  why? • The fixed selling and administrative cost of1,7200,000?  why? • Per unit cost production why?

Accounting
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ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Chapter21: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 21.28EX: Appendix Absorption costing income statement On June 30, the end of the first month of operations,...
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Q#-1  HASF Corporation began operations at the beginning of the current year. one of the year company product a compressor sells for 370 per unit’s information related to the current year activities follows

Variable cost per unit

Direct material ​​​​40

Direct labor ​​​​​74

Manufacturing overhead ​​​96

Annual fixed cost

Manufacturing cost ​​​​1,200,000

Selling and administrative ​​​1,720,000

Sales and production

Sales in units ​​​​​20,000

Production ​​​​​24,000

Required -

Cost of the December 31 finished goods inventory

Net income for the current year Dec 31

If next year production decrease to 22,500 units and general cost behavior patterns do not change what is the likely effect on

• The direct labor cost of 74 per units? why?
• The fixed manufacturing overhead of 1,200,000?  why?
• The fixed selling and administrative cost of1,7200,000?  why?
• Per unit cost production why?  
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