min Account analysis method 1 Manufacturing cost classification for 2016

Min account analysis method 1 manufacturing cost

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10-22(30 min.) Account analysis method.1. Manufacturing cost classification for 2016:
Account Total Costs (1) % of Total Costs That Are Variable (2) Variable Costs (3) = (1)  (2) Fixed Costs (4) = (1) – (3) Variable Cost per Unit (5) = (3) ÷ 75,000 Direct materials Direct manufacturing labour Power Supervision labour Materials-handling labour Maintenance labour Depreciation Rent, property taxes, admin. $300,000 225,000
37,500 56,250 60,000 75,000 95,000 100,000 100% 100 100 20 50 40 0 0 $300,000 225,000 37,500 11,250 30,000 30,000 0 0 $ 0 0 0 45,000 30,000 45,000 95,000
100,000 $4.00 3.00 0.50 0.15 0.40 0.40 0 0 Total $948,750 $633,750 $315,000 $8.45 Total manufacturing cost for 2016 = $948,750 Variable costs in 2017: Account Unit Variable Cost per Unit for 2016 (6) Percentage Increase (7) Increase in Variable Cost per Unit (8) = (6)  (7) Variable Cost per Unit for 2017
(9) = (6) + (8) Total Variable Costs for 2017 (10) = (9)  80,000 Direct materials Direct manufacturing labour Power Supervision labour Materials-handling labour Maintenance labour Depreciation Rent, property taxes, admin. $4.00 3.00 0.50 0.15 0.40 0.40 0 0 5% 10 0 0 0 0 0
0 $0.20 0.30 0 0 0 0 0 0 $4.20 3.30 0.50 0.15 0.40 0.40 0 0 $336,000 264,000 40,000 12,000 32,000 32,000 0 0 Total $8.45 $0.50 $8.95 $716,000 Fixed and total costs in 2017:
Account Fixed Costs for 2016 (11) Percentage Increase (12) Dollar Increase in Fixed Costs (13) = (11)  (12) Fixed Costs for 2010 (14) = (11) + (13) Variable Costs for 2017 (15) Total Costs (16) = (14) + (15)
Direct materials Direct manufacturing labour Power Supervision labour Materials-handling labour Maintenance labour Depreciation Rent, property taxes, admin. $ 0 0 0 45,000 30,000 45,000 95,000 100,000 0% 0 0 0 0 0 5 7 $ 0 0 0 0
0 0 4,750 7,000 $ 0 0 0 45,000 30,000 45,000 99,750 107,000 $336,000 264,000 40,000 12,000 32,000 32,000 0 0 $ 336,000 264,000 40,000 57,000 62,000 77,000 99,750 107,000 Total $315,000 $11,750 $326,750 $716,000 $1,042,750
3.Cost classification into variable and fixed costs is based on qualitative, rather than quantitative, analysis. How good the classifications are depends on the knowledge of individual managers who classifythe costs. Gower may want to undertake quantitative analysis of costs, using regression analysis on time-

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