Scherzo Industrial is interested in estimating fixed and variable manufacturing costs using data from October. Based on
Question:
Scherzo Industrial is interested in estimating fixed and variable manufacturing costs using data from October. Based on judgment, the plant manager classified each manufacturing cost as fixed, variable, or part fixed and part variable.
Required
a. Use account analysis to estimate fixed cost per month and variable costs per unit produced.
b. Based on your answer to part a, what is your estimate of the incremental cost of producing 300units?
Transcribed Image Text:
Units Produced 1,200 Cost October $119,340 Detail of Cost: Material Direct labor Depreciation Phone Other utilities Supervisory salaries Equipment repair Indirect materials Factory maintenance Cost Behavior 50,400 19,200 9,000 300 4,200 25,200 7,500 540 3,000 $119340 Variable Variable Fixed Fixed 20% Fixed 75% Fixed 20% Fixed Variable 8096 Fixed Total
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