loryn Instruments Co. developed the following regression equations to indicate costs at various activity levels: Direct labor = P4 per unit Materials = P3 per unit Supervision = P5,000 Power = 300 + P0.25 per unit + P0.50 per machine hour Factory supplies = P250 + P0.75 per unit Depreciation—equipment = P1 per machine hour Depreciation—building = P10,000 During the next period, the company anticipates production of 20,000 units and usage of 3,000 machine hours. Required: Prepare a schedule of the production costs to be incurred during the next period.
loryn Instruments Co. developed the following regression equations to indicate costs at various activity levels: Direct labor = P4 per unit Materials = P3 per unit Supervision = P5,000 Power = 300 + P0.25 per unit + P0.50 per machine hour Factory supplies = P250 + P0.75 per unit Depreciation—equipment = P1 per machine hour Depreciation—building = P10,000 During the next period, the company anticipates production of 20,000 units and usage of 3,000 machine hours. Required: Prepare a schedule of the production costs to be incurred during the next period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Floryn Instruments Co. developed the following regression equations to indicate costs at various activity levels:
Direct labor = P4 per unit
Materials = P3 per unit
Supervision = P5,000
Power = 300 + P0.25 per unit + P0.50 per machine hour
Factory supplies = P250 + P0.75 per unit
Depreciation—equipment = P1 per machine hour
Depreciation—building = P10,000
During the next period, the company anticipates production of 20,000 units and usage of 3,000 machine hours.
Required: Prepare a schedule of the production costs to be incurred during the next period.
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