Marla's Dirndls is a designer and manufacturer of traditional german dresses (dirndls) serving the upper Midwestern...

   

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Marla's Dirndls is a designer and manufacturer of traditional german dresses (dirndls) serving the upper Midwestern United States. Marla's internal accounting group wants to determine what portion of its costs are fixed, and what portion are variable. Using the cost data from 2015 in the table below, please determine: Manufacturing Production Costs (dirndls) January $ 55,000 25,000 February $ 60,000 26,000 March $ 90,000 40,000 April $ 95,000 50,000 May $ 85,000 38,000 June $ 80,000 30,000 July $ 80,000 34,000 August $ 70,000 28,000 September $ 75,000 30,000 October $ 85,000 39,000 November $ 80,000 34,000 December $ 65,000 27,000 Month a. The variable cost per dirndl produced b. The fixed costs of production per month c. If Marla's produces 40,000 dirndls in January of 2016, what should we expect the total costs of production to be? 2. Identify the following activities as unit-level, batch-level, or facility-level i. Cost of training new production workers to assemble multiple products. ii. Cost of indirect materials used exclusively to start a machine used in production. iii. Cost of Plant Manager's salary. iv. Cost of electricity used in production. v. Cost of processing purchase orders (same cost regardless of size of order). Marla's Dirndls is a designer and manufacturer of traditional german dresses (dirndls) serving the upper Midwestern United States. Marla's internal accounting group wants to determine what portion of its costs are fixed, and what portion are variable. Using the cost data from 2015 in the table below, please determine: Manufacturing Production Costs (dirndls) January $ 55,000 25,000 February $ 60,000 26,000 March $ 90,000 40,000 April $ 95,000 50,000 May $ 85,000 38,000 June $ 80,000 30,000 July $ 80,000 34,000 August $ 70,000 28,000 September $ 75,000 30,000 October $ 85,000 39,000 November $ 80,000 34,000 December $ 65,000 27,000 Month a. The variable cost per dirndl produced b. The fixed costs of production per month c. If Marla's produces 40,000 dirndls in January of 2016, what should we expect the total costs of production to be? 2. Identify the following activities as unit-level, batch-level, or facility-level i. Cost of training new production workers to assemble multiple products. ii. Cost of indirect materials used exclusively to start a machine used in production. iii. Cost of Plant Manager's salary. iv. Cost of electricity used in production. v. Cost of processing purchase orders (same cost regardless of size of order).

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ANSWER To determine the variable cost per dirndl produced and the fixed costs of production per mont... View the full answer