Summit Corporation manufactures machines for the apparel industry. The production manager and cost analyst reviewed the accounts for the previous quarter and have provided an estimated breakdown of the fixed and variable portions of manufacturing overhead: Administration and supervision Engineering and indirect labor Indirect supplies Facilities cost Repair and maintenance Total Fixed $ 31,250 6,100 8,400 Variable $ 10,300 59,300 27,000 12,200 133,800 58,700 76,800 $ 238,250 $ 185,600 Total $ 41,550 65,400 35,400 146,000 135,500 $ 423,850 Direct materials for the quarter amounted to $355,500. Direct labor for the quarter was $716,500. During the quarter, 9,500 units were produced. Required: a. No changes are expected in these cost relations next quarter. The firm has budgeted production of 12,350 units. Provide an estimate for total production cost for next quarter. b. Determine the cost per unit of production for the previous quarter and the estimated cost per unit next quarter.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Summit Corporation manufactures machines for the apparel industry. The production manager and cost analyst reviewed the accounts
for the previous quarter and have provided an estimated breakdown of the fixed and variable portions of manufacturing overhead:
Administration and supervision
Engineering and indirect labor
Indirect supplies
Facilities cost
Repair and maintenance
Total
Fixed
$ 31,250
6,100
8,400
133,800
58,700
$ 238,250
Variable
$ 10,300
59,300
27,000
12, 200
76,800
$ 185,600
Total
$ 41,550
65,400
35,400
146,000
135,500
$ 423,850
Direct materials for the quarter amounted to $355,500. Direct labor for the quarter was $716,500. During the quarter, 9,500 units were
produced.
Required:
a. No changes are expected in these cost relations next quarter. The firm has budgeted production of 12,350 units. Provide an
estimate for total production cost for next quarter.
b. Determine the cost per unit of production for the previous quarter and the estimated cost per unit next quarter.
Transcribed Image Text:Summit Corporation manufactures machines for the apparel industry. The production manager and cost analyst reviewed the accounts for the previous quarter and have provided an estimated breakdown of the fixed and variable portions of manufacturing overhead: Administration and supervision Engineering and indirect labor Indirect supplies Facilities cost Repair and maintenance Total Fixed $ 31,250 6,100 8,400 133,800 58,700 $ 238,250 Variable $ 10,300 59,300 27,000 12, 200 76,800 $ 185,600 Total $ 41,550 65,400 35,400 146,000 135,500 $ 423,850 Direct materials for the quarter amounted to $355,500. Direct labor for the quarter was $716,500. During the quarter, 9,500 units were produced. Required: a. No changes are expected in these cost relations next quarter. The firm has budgeted production of 12,350 units. Provide an estimate for total production cost for next quarter. b. Determine the cost per unit of production for the previous quarter and the estimated cost per unit next quarter.
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