Unformatted text preview: Fixed costs 3) Depreciation on office copiers and printers in the administrative area. Fixed costs 4) Salary and benefits of factory maintenance workers. Variable costs Exercise (4 points) 1. Wilson Manufacturing Co. produced 10,000 units during the current year. Two costs are being evaluated: (1) Equipment Rental charges, a fixed cost , were $22,500 or $2.25/unit; and (2) Indirect Materials, a variable cost , were $16,000 or $1.60 per unit. Required: For the coming year, production is expected to be 15,000 units. Calculate, for each of the two costs being evaluated, the anticipated $ cost in total dollars and as a per-unit cost . Total $ Cost Per-Unit Cost Equipment Rental $22,500 $1.50 (22500/15000) *fixed costs stay the same in total money Indirect Materials $25,440 (1.60*15000) $1.60 *variable costs stay the same on a per unit basis....
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- Summer '08
- Managerial Accounting, Wilson Manufacturing Co.