BlackHeath Case - Variable Costs per unit Direct Materials...

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Variable Costs per unit Semivariable Costs Change in Cost Change in Units Direct Materials per unit 0.75 Indirect labor 40 200 Direct Labor per unit 1.25 Fixed 100 Variable cost per unit 0.2 Fixed Costs Other Overhead 100 200 Indirect materials 300 Fixed 110 Factory Insurance 125 Variable cost per unit 0.5 Office Expenses 781 Electricity 20 200 Fixed 75 Variable cost per unit 0.1 Commission per unit 0.7 Units 500 Average Variable Costs Per Unit Direct Materials per unit 0.75 Direct Labor per unit 1.25 Indirect labor cost per unit 0.2 Period Costs Other Overhead cost per unit 0.5 Commissions Elecrticity cost per unit 0.1 Office Expenses Total 2.8 Average Fixed Costs per unit Indirect materials 0.6 Indirect labor - fixed 0.2 Other Overhead - fixed 0.22 Unit cost w/o commission Factory Insurance 0.25 4.22 Electricity - fixed 0.15 Total 1.42 Selling and Admin. Expenses Unit cost w/ commission Sales Commission 0.7 4.92 Selling and Admin. Expenses Office Expenses 1.562
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Sales $5.50 Variable Cost CM $5.50 per unit Units 100 CM $5.50 Profit $550.00 Because Adelaide was dealing with a special order, we only need to consider the varibale costs.
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  • Fall '13
  • MarnieMatthews
  • Cost Accounting, Factory Insurance, Sales Commission

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