- Units Of Week Output 800 1 2 1000 3 1200 Enter F V Or M Direct Materials 600 750 900 V Indirect Direct Indirect Mater 1 (143.8 KiB) Viewed 10 times
Units of Week Output 800 1 2 1000 3 1200 Enter F, V, or M Direct Materials $600 750 900 V Indirect Direct Indirect Material Labor Labor $1,000 1250 1500 V $360 400 440 M S Electricity $600 600 600 F $230 250 270 M Factory Insuranc Other Overhead e $250 250 250 F $620 720 820 M Instructions: The purpose of this exercise is to help you to understand how costs behave relative to activity volume and how to differentiate between total and per-unit fixed, variable, and mixed costs. 1) Determine whether each of the manufacturing costs listed above are fixed, variable, or mixed and enter F, V, or M into the appropriate boxes above Hint: if the total cost of an item is the same for all levels of output, the cost is fixed; if the unit cost of an item is the same for all levels of output, the cost is variable. otherwise, the cost is mixed. 2) Once you determine the behavior of each manufacturing cost item, complete the Manufacturing Costs" table to the right, following the instructions below: For items categorized as 'V': Input to column L the computation for each variable cost item. For items categorized as 'F': enter in column M the total fixed cost. *Please use the template to the right Manufacturing Cost Direct materials Direct labor Indirect labor Indirect material Electricity Factory Insurance Other overhead Total Manufacturing Costs Administrative and Selling Admin/Selling Expenses Total Costs Windward Unit Total Variable Fixed Cost Cost Cost of 1000 Units Total Per Unit