PART 1 Fixed and Variable Cost Determinations Unit Cost Calculations The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: Lamp Kit: $16.0000000 per lamp Direct Labor: 2.0000000 per lamp (4 lamps/hr.) Variable Overhead: 2.0000000 per lamp Fixed Overhead: 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp: $30.0000000 per lamp Expected increases for 20x2 When calculating projected increases round to TWO ($0.00) decimal places. 1. Material Costs are expected to increase by 2.00% . 2. Labor Costs are expected to increase by 3.00%. 3. Variable Overhead is expected to increase by 5.50%. 4. Fixed Overhead is expected to increase to $265,000. 5. Fixed Administrative expenses are expected to increase to $60,000. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 4.50%. 7. Fixed selling expenses are expected to be $33,000 in 20x2. 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 3.50%. On the following schedule develop the following figures: 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 2- 20x2 Projected Variable Unit Cost per lamp. 3- 20x2 Projected Fixed Costs.

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I See The Light, Inc
Schedule of Projected Costs
Variable Manufacturing Unit Cost
	20x1 Cost	Projected Percent Increase	20x2 Cost Rounded to 2 Decimal Places
Lamp Kit				{4.01}
Labor				{4.02}
Variable Overhead				{4.03}
Projected Variable Manufacturing Cost Per Unit				{4.04}
Total Variable Cost Per Unit
	20x1 Cost	Projected Percent Increase	20x2 Cost Rounded to 2 Decimal Places
Variable Selling				{4.05}
Variable Administrative				{4.06}
Projected Variable Manufacturing Unit Cost				{4.04}
Projected Total Variable Cost Per Unit				{4.07}
Schedule of Fixed Costs
	20x1 Cost	Projected Percent Increase	20x2 Cost
Fixed Overhead				{4.08}
(normal capacity of _________ lamps @ __ )
Fixed Selling				{4.09}
Fixed Administrative				{4.10}
Projected Total Fixed Costs				{4.11}