fixed

1.) 105000 11970

70000 9380 4200
4200
35000 2590 0.074

2--9)
1.) Direct Materials 80,000.00
Direct labor 42,000.00
Manufacturing overhead 19,000.00
Product Cost 141,000.00

2.) Selling Expenses 22,000.00

Administrative expense 35,000.00
Period Cost 57,000.00

3.) Direct labor 42,000.00

Manufacturing overhead 19,000.00
Conversion Cost 61,000.00

4.) Direct Materials 80,000.00

Direct labor 42,000.00
Prime Cost 122,000.00

2--10)
Req.s
1.) Total Cost:
Variable Cost
Fixed Cost
Units Sold: 45,000.00 Total Cost:
Price per unit sold: 16.00 Cost per unit:
Variable Cost
 Fixed Cost
Total Cost per unit:

2.) Harris Company

Income Statement
for the year ended 20x

Sales
Variable Expenses:
Cost of Goods Sold
Variable Selling
Variable Administrative

Contribution Margin
Fixed Expenses:
Fixed Selling
Fixed administrative
Net Income

2--11)
Month Units Shipped Total Shipping
0 0
January 3 1,800.00
February 6 2,300.00
March 4 1,700.00
April 5 2,000.00
May 7 2,300.00
June 8 2,700.00
July 2 1,200.00
Req.s
1.) Yes, there is a direct relationship between units shipped and total shipping
2.) Units Shipped Total Shipping
high 8 2,700.00 fixed:
low 2 1,200.00 variable:
dif 6 1,500.00
Variable per unit 250.00
equation: y = 2000 + 250X

3.) Month Units Total Fixed

0 700 700
January 3 1,450.00 700.00
February 6 2,200.00 700.00
March 4 1,700.00 700.00
April 5 1,950.00 700.00
 May 7 2,450.00 700.00
June 8 2,700.00 700.00
July 2 1,200.00 700.00

2--12)
Product Cost
Name of the Cost Variable Cost Fixed Cost
Direct materials
Rental Income
Direct materials X X
Rental Cost(warehouse) X
Rental Cost(equipment) X
Labor X
Depreciation X
Advertising X
Supervisors Salary X
Electricity X
Shipping X
Investment Income
variable

7770 Eq.: y = 4200+.074x y = 4200 + .074x 10120

5180

Direct Materials 80,000.00

Direct labor 42,000.00
Manufacturing overhead 19,000.00
Selling Expenses 22,000.00
Administrative expense 35,000.00

Units Produced and Sold

30,000.00 40,000.00 50,000.00

180,000.00 240,000.00 300,000.00

300,000.00 300,000.00 300,000.00
480,000.00 540,000.00 600,000.00

6.00 6.00 6.00

 10.00 7.50 6.00
16.00 13.50 12.00

720000

270,000.00

450,000.00

300,000.00

150,000.00

Total Shipping
3000

2500

2000 Total Shipping

Linear (Total Shipping)
1500

1000

500

700.00 0
2,000.00 0 1 2 3 4 5 6 7 8 9

3000

Variable 2500
0
750.00 2000 Total
1,500.00 Linear (Total)
1,000.00 1500 Fixed
1,250.00 Linear (Fixed)
1000 Variable
Linear (Variable)

500
 2000 Total
Linear (Total)
1500 Fixed
Linear (Fixed)
1,750.00 1000 Variable
Linear (Variable)
2,000.00
500.00 500

0
0 1 2 3 4 5 6 7 8 9
Product Cost Opportunity
Period Cost Sunk Cost
Direct Labor Manufacturing Overhead Cost
X

X
X
X
X X
X
X
X
X
X
Total Shipping
Linear (Total Shipping)

Total
Linear (Total)
Fixed
Linear (Fixed)
Variable
Linear (Variable)
Total
Linear (Total)
Fixed
Linear (Fixed)
Variable
Linear (Variable)