10 11 Fixed and Variable Cost Determinations Unit Cost Calculations 12 13 The projected cost of a lamp is calculated based upon the projected increases or decreases to 14 current costs. The present costs to manufacture one lamp are: 20 21 24 30 31 32 33 34 Lamp Kit: Direct Labor: Variable Overhead: Fixed Overhead: Cost per lamp: $16.0000000 per lamp 2.0000000 per lamp (4 lamps/hr.) 2.0000000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) $30.0000000 per lamp 40 Expected increases for 20x2 41 When calculating projected increases round to TWO ($0.00) decimal places. 42 1. Material Costs are expected to increase by 4.50%. 43 44 50 2. Labor Costs are expected to increase by 6.50%. 51 52 3. Variable Overhead is expected to increase by 3.00%. 53 54 4. Fixed Overhead is expected to increase to $275,000. 60 61 5. Fixed Administrative expenses are expected to increase to $56,000. 62 63 64 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 6.00%. 70 71 72 73 74 80 7. Fixed selling expenses are expected to be $41,000 in 20x2. 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 2.00%. 81 On the following schedule develop the following figures: 82 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 83 84 2- 20x2 Projected Variable Unit Cost per lamp. 90 91 3- 20x2 Projected Fixed Costs. 92 93 91