HASF Corporation began operations at the beginning of the current year. one of the year company product a compressor sells for 370 per unit’s information related to the current year activities follows

Variable cost per unit 

Direct material                                                40

Direct labor                                                     74

Manufacturing overhead                                 96

Annual fixed cost 

Manufacturing cost                                         1,200,000

Selling and administrative                              1,720,000

Sales and production

Sales in units                                                   20,000

Production                                                      24,000

Required -

Cost of the December 31 finished goods inventory

Net income for the current year Dec 31

If next year production decrease to 22,500 units and general cost behavior patterns do not change what is the likely effect on

• The direct labor cost of 74 per units? why?
• The fixed manufacturing overhead of 1,200,000?  why?
• The fixed selling and administrative cost of1,7200,000?  why?
• Per unit cost production why? 

Answer rating: 100% (QA)

1 Calculation of cost on 31st December of finished goods Particulars Amount Direct Materials 40 Dire... View the full answer