6. Bazinga's manufacturing process is highly automated, so their direct labour cost is low. Employees are...

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6. Bazinga's manufacturing process is highly automated, so their direct labour cost is low. Employees are paid on a per unit basis. Their total pay each month is, therefore, dependent on production volumes and averages $12.00 per hour. This rate already includes the employer's portion of employee benefits. All payroll costs are paid in the period in which they are incurred. Each unit spends a total of 15 minutes in production. 7. Due to the similarity of the equipment in each of the production stages and the company's concentration on a single product, manufacturing overhead is allocated based on volume (i.e. the units produced). The unit variable overhead manufacturing rate is $1.50, consisting of: Utilities--$0.60; Indirect Materials--$0.10; Plant maintenance-$0.50; environmental fee--$0.14; and Other--$0.16. 8. The fixed manufacturing overhead costs for the entire year are as follows: Training and development Property and business taxes Supervisor's salary $ 43,200 39,000 149,400 Amortization on equipment 178,800 Insurance 24,000 Other 75,600 $510,000 The property and business taxes are paid on December 31 of each year. The expected payment for next year is $39,600. The annual insurance premium is paid at the beginning of March each year. There should be no change in the premium from last year. 6. Bazinga's manufacturing process is highly automated, so their direct labour cost is low. Employees are paid on a per unit basis. Their total pay each month is, therefore, dependent on production volumes and averages $12.00 per hour. This rate already includes the employer's portion of employee benefits. All payroll costs are paid in the period in which they are incurred. Each unit spends a total of 15 minutes in production. 7. Due to the similarity of the equipment in each of the production stages and the company's concentration on a single product, manufacturing overhead is allocated based on volume (i.e. the units produced). The unit variable overhead manufacturing rate is $1.50, consisting of: Utilities--$0.60; Indirect Materials--$0.10; Plant maintenance-$0.50; environmental fee--$0.14; and Other--$0.16. 8. The fixed manufacturing overhead costs for the entire year are as follows: Training and development Property and business taxes Supervisor's salary $ 43,200 39,000 149,400 Amortization on equipment 178,800 Insurance 24,000 Other 75,600 $510,000 The property and business taxes are paid on December 31 of each year. The expected payment for next year is $39,600. The annual insurance premium is paid at the beginning of March each year. There should be no change in the premium from last year.