Question

Benoit, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2017 Click the icon to see the account classification.)

Answer 1

Materials-handling Account Total variable cost in 2018 Direct materials $367,200 Direct manufacturing labour 285,600 Power 42,500 Supervision labour 68,850 labour 61,500 Maintenance labour 82, 250 Depreciation 94,500 Rent, prop. taxes, and admin 137,500 Total $1,139,900 Working: - Direct moterial per unit in 2017= 320,000 = $4/ unit Direct material Cost in 2018 = ($4 x 108%) x 85,000 $367,200 Diect manufacturing labowe ben senit in 2017 = 240,000 = $3 lanit labour cost in 2018 = ($3x112%) x 85,000 = $285,600 Since the power rates and wage rates for supervision , mate- cials handling and maintenance are wat erbated to change we will simply extrapolate the cast for 85,000 units Power Cost = 40000 x 85,000 $42,500, Supervision labour cost = (68,000x80%) + (68,000x20% x 85,000 80,000) 54,400 + 14,450 $ 68,850 Materials - handling labowe = (60,000 60*)+(60,000 x40% X 85.000 - 36,000 + 25,500 = $61,500. Maintenance labour cost = (80,000 + 55%) + ( 80,000x 45% x 85,000 = 44,000 + 38,250 - $82,250, 80,000 Depreciation Cost for 2018 = 90,000 * 105°/. Rent, preoperty tax and administration Cost for 2018 = 125,000 x 110%. = $137,500 Direct manufacturing 80,000 = $94,500