Progress, Inc. has manufacturing capacity of 15,000 units. Last year, the company manufactured 12,000 units and...

 

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Progress, Inc. has manufacturing capacity of 15,000 units. Last year, the company manufactured 12,000 units and incurred the cost indicated below. The anticipated demand for this year is 20,000 units. To achieve this level the company would need to lease new equipment, resulting in a 40 percent increase in equipment lease costs, a 40 percent increase in own capacity and a 20 percent increase in utility costs. Cost details: • direct materials used ............-. CZK 30,600 • direct labor. • supervisory salaries (fixed). • utility costs (fixed) • equipment lease • property tax on building (fixed). CZK 5,600 CZK 24,000 CZK 18,000 CZK 6,000 ..*..* CZK 80,000 Required: Make a product costing (cost per unit) if 20,000 units are produced. Progress, Inc. has manufacturing capacity of 15,000 units. Last year, the company manufactured 12,000 units and incurred the cost indicated below. The anticipated demand for this year is 20,000 units. To achieve this level the company would need to lease new equipment, resulting in a 40 percent increase in equipment lease costs, a 40 percent increase in own capacity and a 20 percent increase in utility costs. Cost details: • direct materials used ............-. CZK 30,600 • direct labor. • supervisory salaries (fixed). • utility costs (fixed) • equipment lease • property tax on building (fixed). CZK 5,600 CZK 24,000 CZK 18,000 CZK 6,000 ..*..* CZK 80,000 Required: Make a product costing (cost per unit) if 20,000 units are produced.

Answer rating: 100% (QA)

Solution Calculate the direct material cost direct labor supervis... View the full answer