Challenge#6 Variable Costing Stronghold Vaults Company manufacturers vaults for

Question

Challenge#6 Variable Costing Stronghold Vaults Company manufacturers vaults for safekeeping. For the year ecember 3 1, 2017 the following Information was available regarding production for the year Beg. Inventory The actual quantity of vaults manufactured Actual quantity of vaults sold inthe year . 22,000 20,000 . Actual costs incurred as follows (fil in blanks before moving on Manufacturing Costs Cost Per Unit for 22,000 manufactured Tetal Absorption Manufacturing Costs V Direct materials v Direct labor $ 2,200,000 $ 1,496,000 3,696,000 Total variable direct costs V Indirect Materials V Indirect labor V Machinery repairs V Utilities $ 374,000 $ 100,100 $ 110,000 836,000 5 36,300 $ 183,700 35,200 Total variable FOH osts F Depreciation F Rent F Utilities N/A Total fixed FOH costs 255,200 Total FOH costs S1.tn.0 1,091,200 4,787,200 Total manufacturing costs Selling and Administrative Costs Cost per Unit for 20,000 sold Total Selling expenses: 5.00 F Sales salaries F Store rent F Store utilities $ 510,000 $ 36,000 12,600 Administrative expenses: 2.75 V Administrative salaries F Administrative salaries F Office rent F Office utilities overtime $ 224,000 $ 28,000 $ 9,100 the data provided above, complete the following pages 67

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1 Beginning Inventory 10000 add: Manufactured 22000 less: Sold 20000 Closing Inventory 12000 Cost per unit 2 Absorption Variable Direct Material 2200000 100 100 Cost/22000 Direct Labor 1496000 68 68 Total Variable Direct 3696000 168 168 Indirect Material 251900 11.45 11.45 Indirect Labor 374000 17 17 Machin Repair 100100 4.55 4.55 Utilities 110000 5 5 Total Variable FOH Cost 836000 38 38 Dep 36300 1.65 NA Rent 183700 8.35 Utilities 35200 1.6 Total Fixed FOH Cost 255200 11.6 Total FOH Cost 1091200 49.6 38 Total Manufacturing Cost 4787200 217.6 206 3 Selling and Admin Total Per unit Selling Comission 20000*5 100000 5 Sales Salaries 510000 Store Rent 36000 Store Utilities 12600 Administrative Salaries-OT 20000*2.75 55000 2.75 Administrative Salaries 224000 Office Rent 28000 Office Utilities 9100

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