PART 1
	Fixed and Variable Cost Determinations
	Unit Cost Calculations
The projected cost of a lamp is calculated based upon the projected increases or decreases to
current costs. The present costs to manufacture one lamp are:
	Lamp Kit:		$16.0000000	per lamp
	Direct Labor:		2.0000000	per lamp (4 lamps/hr.)
	Variable Overhead:		2.0000000	per lamp
	Fixed Overhead:		10.0000000	per lamp (based on normal capacity of 25,000 lamps)
	Cost per lamp:		$30.0000000	per lamp
Expected increases for 20x2
When calculating projected increases round to TWO ($0.00) decimal places.
	1. Material Costs are expected to increase by 5.00% .
	2. Labor Costs are expected to increase by 6.00%.
	3. Variable Overhead is expected to increase by 6.00%.
	4. Fixed Overhead is expected to increase to $290,000.
	5. Fixed Administrative expenses are expected to increase to $60,000.
	6. Variable selling expenses (measured on a per lamp basis) are expected to increase
	by 5.00%.
	7. Fixed selling expenses are expected to be $33,000 in 20x2.
	8. Variable administrative expenses (measured a per lamp basis) are expected to
	increase by 5.50%.
On the following schedule develop the following figures:
	1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp.
	2- 20x2 Projected Variable Unit Cost per lamp.
	3- 20x2 Projected Fixed Costs.						To keep records of the actual cost of a special order job, a Job Order Cost System has been developed. Overhead is applied at the rate of 50% of the direct labor cost. Job Order Costing Section On January 1, 20x2, Division S began Job 2407 for the Client, THE BIG CHILDREN STORE. The job called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan Purchased 4,125 Lamp Kits @ $16.65 per kit. 9-Jan 4,175 sets of Lamp Kits were requisitioned. 17-Jan Payroll of 630 Direct Labor Hours @ $9.80 per hour. 30-Jan Payroll of 680 Direct Labor Hours @ $10.05 per hour. 30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were used or scrapped, and are a cost of normal processing. Month End Overhead Information Actual Variable Manufacturing Overhead $ 1,493.40 Actual Fixed Manufacturing Overhead $ 41,123.45 Round to two places, $##.## Cost of Direct Material Incurred in Manufacturing Job 2407 $ 832.50 {13.01} Cost of Direct Labor Incurred in Manufacturing Job 2407 $ 13,008.00 {13.02} Cost of Manufacturing Overhead Applied to Job 2407 {13.03} Cost of manufacturing one lamp $ 29,095.00 {13.04}