Brief Exercises: Set B Brief Exercise 3-25. Creating and Using a Cost Formula Objective 3 Example 3.1 Kleenaire Motors manufactures hybrid sports utility vehicles (SUVS). Kleenaire incurs monthly depreciation costs of $10,000,000 on its highly automated plant machinery and warehousing facility. Also, each SUV requires materials and manufacturing overhead resources. On average, the company uses 75,000,000 pounds of steel to manufacture 50,000 SUVs per month. Each pound of steel costs $0.20. In addition, manufacturing overhead resources are driven by machine hours. On average, the company incurs $200,000,000 of variable manufacturing overhead resources to produce 50,000 SUVS per month. Required: 1. Create a formula for the monthly cost of SUVS for Kleenaire. 2. If Kleenaire expects to manufacture 55,000 SUVS next month, what is the expected fixed cost (assuming that 55,000 units is within the company's current relevant range)? Total variable cost? Total manufacturing cost (i.e., both fixed and variable)? Use the following information for Brief Exercises 3-30 and 3-31: During the most recent year, Pelham Company had the following data associated with the product it makes Units in beginning inventory 400 Units produced 14,000 Units sold ($300 per unit) 13,700 Variable costs per unit: Direct materials Direct labor $15 $36 $9 Variable overhead Fixed costs: Fixed overhead per unit produced Fixed selling and administrative $40 $140.000 Brief Exercise 3-30. Inventory Valuation under Absorption Costing Objective 4 Example 3.6 Refer to the data for Pelham Company above. Required: 1. How many units are in ending inventory? 2. Using absorption costing, calculate the per-unit product cost. 3. What is the value of ending inventory under absorption costing? Brief Exercise 3-31. Inventory Valuation under Variable Costing Objective 4 Example 3.7 Refer to the data for Pelham Company above. Required: 1. How many units are in ending inventory? 2. Using variable costing, calculate the per-unit product cost. 3. What is the value of ending inventory under variable costing