Calculate the unit cost and the total cost for lima company

Assignment Help Accounting Basics

Reference no: EM131902075

Problem

Lima Company manufactured 15,000 units of product last month and identified the following costs associated with the manufacturing activity:

Variable costs:
Direct materials used	1,032,000
Direct labor	1,942,000
Indirect materials and supplies	238,000
Power to run plant equipment	214,000
Fixed costs:
Supervisory salaries	914,000
Plant utilities (other than power to run plant equipment)	283,000
Depreciation on plant and equipment (straight-line, time basis)	148,000
Property taxes on building	194,000

Required:

Unit variable costs and total fixed costs are expected to remain unchanged next month. Calculate the unit cost and the total cost if 21,000 units are produced next month.

Reference no: EM131902075

Questions Cloud

What is meant by the internal processes of a team : What is meant by the "internal processes" of a team? Why is it important to manage both the internal processes and external opportunities/constraints of a team

Contemplating an investment with an acquisition : Suppose a firm is contemplating an investment with an acquisition cost of $2,100 and an economic life of 11 years. Further suppose the stream of Expected

Discuss the nspe code of ethics for engineers : Yesterday, Carol, an engineer with Hancock Enterprises, was at lunch with several work friends. Joe, a person Carol has known for a year or so from similar.

Discuss the main differences preferred stocks and bonds : Describe the main differences between an over-the-counter market and an organized exchange.

Calculate the unit cost and the total cost for lima company : Lima Company manufactured 15,000 units of product last month and identified. Calculate the unit cost and the total cost if 21,000 units are produced next month.

Define social learning theory : Define social learning theory. Explain the four steps of the modeling process. Compare and contrast rational decision making and bounded rationality.

Describe the economic order quantity : XYC co. purchases an item. The annual demand for this item is 30000 units. The ordering cost is 80$ per order. The holding cost is 15$ per unit per yea?

What annual level of expenditure will those savings support : ow much money would you need to have saved today to not need to contribute any more money for the next 40 years.

What is project npv in the worst-case scenario : What is project NPV in the best-case scenario, that is, assuming all variables take on the best possible value? What is project NPV in the worst-case scenario?

User Account

All Pages