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Category > Accounting Posted 24 Aug 2017 My Price 9.00

Safety Auto Accessories.

65. Cost data for multiple purposes: Safety Auto Accessories. Safety Auto Accessories manufactures an automobile safety seat for children that it sells through several retail chains. Safety Auto makes sales exclusively within its five-state region in the Midwest. The cost of manufacturing and marketing children’s automobile safety seats at the company’s forecasted volume of 15,000 units per month follows:

Variable Materials ..........................................................................................................................................	$300,000
Variable Labor ................................................................................................................................................	150,000
Variable Overhead..........................................................................................................................................	30,000
Fixed Overhead ..............................................................................................................................................	180,200
Total Manufacturing Costs ......................................................................................................................	$660,200
Variable Nonmanufacturing Costs..............................................................................................................	$ 75,000
Fixed Nonmanufacturing Costs...................................................................................................................	105,000
Total Nonmanufacturing Costs...............................................................................................................	$180,000
Total Costs ..................................................................................................................................................	$840,200

Unless otherwise stated, you should assume a regular selling price of $70 per unit. Ignore income taxes and other costs the problem does not mention.

Early in July, the senior management of Safety Auto Accessories met to evaluate the firm on performance for the first half of the year. The following exchange ensued.

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Maurice Tutor

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Status NEW Posted 24 Aug 2017 10:08 PM My Price 9.00

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