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Elementary,High School,College,University,PHD
Teaching Since: | May 2017 |
Last Sign in: | 259 Weeks Ago, 5 Days Ago |
Questions Answered: | 20103 |
Tutorials Posted: | 20155 |
MBA, PHD
Phoniex
Jul-2007 - Jun-2012
Corportae Manager
ChevronTexaco Corporation
Feb-2009 - Nov-2016
Question description
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Stellar Packaging Products is experiencing an increase in demand for the month of August as a result of Estrella Coffee’s comeback in its retail outlets. The following fact pattern forms the basis for the static budget:
Stellar Packaging Products |
Variable Costs Total |
Fixed Costs Total |
Raw materials |
$ 100,000 |
 |
Direct manufacturing labor |
$ 125,000 |
 |
Indirect manufacturing labor |
 |
$ 105,000 |
Factory Insurance & Utilities |
 |
$ 63,000 |
Depreciation – Pressroom |
 |
$ 38,500 |
Repairs and maintenance – factory |
 |
$ 28,000 |
Selling, marketing & distribution expenses |
$ 40,000 |
$ 80,000 |
General and administrative expenses |
 |
$ 120,000 |
Variable Cost and Volume Data |
Plastic |
Raw materials = 0.10 lbs x $2.00/lb. |
$ 0.20 |
Direct Labor = 0.025 hr x $10/hr. |
$ 0.25 |
Volume in units |
500,000 |
Sales per unit are $3.00.
Required:
Your paper should meet the following requirements:
Be sure to review the Module 6 Critical Thinking grading rubric, which may be accessed through the Course Information page.
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