Based on the information above...

1. Explain the difference between manufacturing costs and nonmanufacturing costs and provide examples for each.

2. Review the cost analyses you computed in Excel and explain why some of the manufacturing and nonmanufacturing costs are different depending on the volume of brochures produced and some are the same. Be sure to consider both per-unit and total costs in your response.

3.Explain fixed and variable cost behavior in terms of production volume, by responding to the items below.

a) Enter Yes or No into the table below to respond to each of the following questions:

Does variable cost per-unit change when production volume changes?

Does total variable cost change when production volume changes?

Does fixed cost per-unit change when production volume changes?

Do total fixed costs change when production volume changes?

Explain your answers entered in the table below.

	Per-Unit Costs	Total Costs
Variable Costs
Fixed Costs

The monthly costs shown below are from Exhibit 1 in the case, assuming printing volume is 150,000 brochures. Your assignment is to compute the amounts in the highlighted cells. Number of units: Volume (# of brochures) # borchures in each unit # of units 150,000 100 1,500 120,000 100 1,200 Cost per 100 Monthly costs at brochures 150,000 volume Cost per 100 Monthly costs at brochures 120,000 volume Manufacturing costs: Direct material variable Direct labor, variable Direct labor, fixed Manufacturing overhead variable Manufacturing overhead, fixed Total manufacturing costs $ $ $ $ $ $ 4.00 1.00 2.00 1.00 2.25 10.25 $6,000 1,500 3,000 1,500 3.375 $15,375 $4.00 1.00 2.50 1.00 2.81 $11.31 $4,800 1,200 3,000 1,200 3,375 $13,575 $ Nonmanufacturing costs: Marketing, variable Marketing, fixed Corporate, fixed Total nonmanufacturing costs Total costs $1.00 1.25 2.50 $4.75 15.00 $1,500 1,875 3.750 $7,125 $22,500 $1.00 1.56 3.13 $5.69 $17.00 $1,200 1,875 3.750 $6,825 $20,400 Variable manufacturing costs per unit Variable nonmanufacturing costs per unit Fixed manufacturing costs per unit Fixed nonmanufacturing costs per unit GA GA GA 6.00 1.00 4.25 3.75 $ $ $ $ 6.00 1.00 5.31 4.69 The monthly costs shown below are from Exhibit 1 in the case, assuming printing volume is 150,000 brochures. Your assignment is to compute the amounts in the highlighted cells. Number of units: Volume (# of brochures) # borchures in each unit # of units 150,000 100 1,500 120,000 100 1,200 Cost per 100 Monthly costs at brochures 150,000 volume Cost per 100 Monthly costs at brochures 120,000 volume Manufacturing costs: Direct material variable Direct labor, variable Direct labor, fixed Manufacturing overhead variable Manufacturing overhead, fixed Total manufacturing costs $ $ $ $ $ $ 4.00 1.00 2.00 1.00 2.25 10.25 $6,000 1,500 3,000 1,500 3.375 $15,375 $4.00 1.00 2.50 1.00 2.81 $11.31 $4,800 1,200 3,000 1,200 3,375 $13,575 $ Nonmanufacturing costs: Marketing, variable Marketing, fixed Corporate, fixed Total nonmanufacturing costs Total costs $1.00 1.25 2.50 $4.75 15.00 $1,500 1,875 3.750 $7,125 $22,500 $1.00 1.56 3.13 $5.69 $17.00 $1,200 1,875 3.750 $6,825 $20,400 Variable manufacturing costs per unit Variable nonmanufacturing costs per unit Fixed manufacturing costs per unit Fixed nonmanufacturing costs per unit GA GA GA 6.00 1.00 4.25 3.75 $ $ $ $ 6.00 1.00 5.31 4.69