Cost Data for year

USA Discussion in 'Exams and Studying' started by taylor deal, Mar 8, 2018.

  1. taylor deal

    taylor deal

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    I am given this data for the year 2017 and have to create a CVP Income Statement:

    2017 Cost Data
    Manufacturing Costs for high chairs (based on production volume of 30,000 units):
    [​IMG] [​IMG]
    Direct Materials $22 per unit
    Direct Labor $16 per hour (each worker can make 2 units in 1 hour) $3 per unit
    Packaging $2.50 per unit
    Variable Manufacturing Overhead Fixed Manufacturing Overhead $140,000

    Selling and Administrative Costs for high chairs (based on sales volume of 30,000 units):

    Sales Commissions $5.80 per unit
    Shipping Costs $4.00 per unit
    Advertising and Promotion (fixed) $15,000
    Fixed Selling and Admin Expenses $12,000

    I want to make sure I'm calculating the Direct Labor cost correctly, would I take (30,000 units / 2) x $16/hour?
     

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    taylor deal, Mar 8, 2018
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