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Cost Behavior Project
Accounting 347 Cost Behavior Project Essay
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Order Number |
890788675656 |
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Type of Project |
ESSAY |
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Writer Level |
PHD VERIFIED |
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Format |
APA |
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Academic Sources |
10 |
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Page Count |
3-12 PAGES |
Instructions/Descriptions
Accounting 347 Cost Behavior Project Essay
Accounting 347
Cost Behavior Project – Second Project
Winter 2019
Bush incorporated, a manufacturing company reports the following actual costs for the year ended December 31, 2018.
| Account | Classification | Cost | |||
| Direct materials
Direct manufacturing labor Power Supervision labor Materials-handling labor Maintenance labor Depreciation Rent, property taxes, admin |
All Variable
All Variable All Variable 20% Variable 50% Variable 40% Variable All Fixed All Fixed |
$300,000
225,000 37,500 56,250 60,000 75,000 95,000 100,000 |
|||
| The company produced 75,000 units in 2018 and the management is estimating the costs for 2019 using the information from 2018. The following additional information is available for 2019. |
- Direct materials prices in 2019 are expected to increase by 5% compared with 2018.
- Under the terms of the labor contract, direct manufacturing labor wage rates are expected to increase by 10% in 2019 compared with 2018.
- Power rates and wage rates for supervision, materials handling, and maintenance are not expected to change.
- Depreciation costs, rent, property taxes, and administration costs are expected to increase by 10%.
- The company expects to manufacture and sell 80,000 units in 2019.
Requirements:
- Prepare a schedule of variable and fixed cost for each of the costs and total manufacturing cost for 2018 and 2019.
- Calculate the company’s per unit cost for 2018 and 2019.
Accounting 347 Cost Behavior Project Essay
