Mike's Radiator Services specializes in the repair and replacement of radlators for passenger vehicles. Variable and...

 

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Mike's Radiator Services specializes in the repair and replacement of radlators for passenger vehicles. Variable and fixed costs related to installation activities for the most recent month (January) are listed below: Item Number of radiators replaced Variable expenses: Direct materials (new radiators) Direct labour (2 hours per installation) Indirect materials Fixed expenses: Installation supervisor's wages Equipment depreciation Insurance and utilities for garage 110 $55,000 5,500 550 $ 9,152 1,144 814 Required: 2. Mike expects that 88 radiators will be installed in February and that this level of activity is within the relevant range for all variable and fixed expenses. a & b-1. Calculate the total expense and per unit amounts for each of the variable and fixed cost items above. (Round "per unit" answers to 2 decimal places.) February (Total Cost) February Per Unit Item Variable expenses: Direct materials (new radiators) $ 44,000.00 %24 500.00 Direct labour (2 hours per installation) $ 8,800.00 S 50.00 Indirect materials $ 440.00 $ 5.00 Fixed expenses: Installation supervisor's wages Equipment depreciation Insurance and utilities for garage b-2. Explain any differences in the per unit amounts between January and February. Mike's Radiator Services specializes in the repair and replacement of radlators for passenger vehicles. Variable and fixed costs related to installation activities for the most recent month (January) are listed below: Item Number of radiators replaced Variable expenses: Direct materials (new radiators) Direct labour (2 hours per installation) Indirect materials Fixed expenses: Installation supervisor's wages Equipment depreciation Insurance and utilities for garage 110 $55,000 5,500 550 $ 9,152 1,144 814 Required: 2. Mike expects that 88 radiators will be installed in February and that this level of activity is within the relevant range for all variable and fixed expenses. a & b-1. Calculate the total expense and per unit amounts for each of the variable and fixed cost items above. (Round "per unit" answers to 2 decimal places.) February (Total Cost) February Per Unit Item Variable expenses: Direct materials (new radiators) $ 44,000.00 %24 500.00 Direct labour (2 hours per installation) $ 8,800.00 S 50.00 Indirect materials $ 440.00 $ 5.00 Fixed expenses: Installation supervisor's wages Equipment depreciation Insurance and utilities for garage b-2. Explain any differences in the per unit amounts between January and February.

Answer rating: 100% (QA)

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