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: $16.0

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 20×2

When calculating projected increases round to TWO ($0.00) decimal places.

1. Material Costs are expected to increase by 5.50% .

2. Labor Costs are expected to increase by 2.50%.

3. Variable Overhead is expected to increase by 6.50%.

4. Fixed Overhead is expected to increase to $290,000.

5. Fixed Administrative expenses are expected to increase to $56,000.

6. Variable selling expenses (measured on a per lamp basis) are expected to increase

by 4.50%.

7. Fixed selling expenses are expected to be $37,000 in 20×2.

8. Variable administrative expenses (measured a per lamp basis) are expected to

increase by 5.00%.

On the following schedule develop the following figures:

1- 20×2 Projected Variable Manufacturing Unit Cost of a lamp.

2- 20×2 Projected Variable Unit Cost per lamp.

3- 20×2 Projected Fixed Costs.

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