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The projected increases or decreases to current costs

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Reference no: EM13304313

The projected cost of a lamp is calculated based upon the projected increases or decreases to  current costs. The present costs to manufacture one lamp are:

Lamp Kit: $16.0000000 per lamp
Direct Labor: 2.0000000 per lamp (4 lamps/hr.)
Variable Overhead: 2.0000000 per lamp
Fixed Overhead: 10.0000000 per lamp (based on normal capacity of 25,000 lamps)

Cost per lamp: $30.0000000 per lamp

Expected increases for 20x2
When calculating projected increases round to TWO ($0.00) decimal places.

1. Material Costs are expected to increase by 3.50% .

2. Labor Costs are expected to increase by 3.50%.

3. Variable Overhead is expected to increase by 3.00%.

4. Fixed Overhead is expected to increase to $275,000.

5. Fixed Administrative expenses are expected to increase to $44,000.

6. Variable selling expenses (measured on a per lamp basis) are expected to increase
by 3.00%.

7. Fixed selling expenses are expected to be $29,000 in 20x2.

8. Variable administrative expenses (measured a per lamp basis) are expected to
increase by 2.00%.

On the following schedule develop the following figures:
1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp.

2- 20x2 Projected Variable Unit Cost per lamp.

3- 20x2 Projected Fixed Costs.

Reference no: EM13304313

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