Summit Corporation manufactures machines for the apparel industry. The production manager and cost analyst reviewed the...

 

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Summit Corporation manufactures machines for the apparel industry. The production manager and cost analyst reviewed the accounts for the previous quarter and have provided an estimated breakdown of the fixed and variable portions of manufacturing overhead: Administration and supervision Engineering and indirect labor Indirect supplies Facilities cost Repair and maintenance Total Fixed $ 32,050 6,500 Variable $ 11,100 Total $ 43,150 59,700 66,200 9,200 134,600 59,500 27,400 13,000 36,600 147,600 77,600 137,100 $ 241,850 $ 188,800 $ 430,650 S Direct materials for the quarter amounted to $359,500. Direct labor for the quarter was $720,500. During the quarter, 9,500 units were produced. Required: a. No changes are expected in these cost relations next quarter. The firm has budgeted production of 12,350 units. Provide an estimate for total production cost for next quarter. b. Determine the cost per unit of production for the previous quarter and the estimated cost per unit next quarter. Summit Corporation manufactures machines for the apparel industry. The production manager and cost analyst reviewed the accounts for the previous quarter and have provided an estimated breakdown of the fixed and variable portions of manufacturing overhead: Administration and supervision Engineering and indirect labor Indirect supplies Facilities cost Repair and maintenance Total Fixed $ 32,050 6,500 Variable $ 11,100 Total $ 43,150 59,700 66,200 9,200 134,600 59,500 27,400 13,000 36,600 147,600 77,600 137,100 $ 241,850 $ 188,800 $ 430,650 S Direct materials for the quarter amounted to $359,500. Direct labor for the quarter was $720,500. During the quarter, 9,500 units were produced. Required: a. No changes are expected in these cost relations next quarter. The firm has budgeted production of 12,350 units. Provide an estimate for total production cost for next quarter. b. Determine the cost per unit of production for the previous quarter and the estimated cost per unit next quarter.

Answer rating: 100% (QA)

Answer a To estimate the total cost for next quarter we can use the highlow method to separate the fixed and variable portions of the manufacturing ov... View the full answer