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Urban Auto Glass specializes in the repair and replacement of windshields for passenger vehicles

Accounting

Urban Auto Glass specializes in the repair and replacement of windshields for passenger vehicles. Variable and fixed costs related to installation activities for the most recent month (July) are listed below.

  

Item    
  Number of windshields installed   1,250   
     
  Variable expenses:    
    Direct materials $ 252,500   
    Direct labour (1 hour per installation)   36,250   
    Indirect materials   10,000   
     
  Fixed expenses:    
    Installation supervisor’s wages $ 5,000   
    Installation scheduler’s wages   3,750   
    Warehouse expenses   6,250   
 
     
     
      

Required:
1.

Calculate the per unit amounts for each of the variable expense and fixed expense items in July.

 
 
Item Per Unit
Variable expenses:  
Direct materials $202
Direct labour (1 hour per installation) $29
Indirect materials $8
Fixed expenses:  
Installation supervisor’s wages $4
Installation scheduler’s wages $3
Warehouse expenses $5

Management expects that 1,450 windshields will be installed in August and that this level of activity is within the relevant range for all variable and fixed expenses.
a&b-1.

Calculate the total expense and per unit amounts for each of the variable and fixed cost items above. (Round "per unit" answers to two decimal places.)
   

             

 
 
Item August (Total Cost) August Per Unit
Variable expenses:    
Direct materials    
Direct labour (1 hour per installation)    
Indirect materials    
Fixed expenses:    
Installation supervisor’s wages    
Installation scheduler’s wages    
Warehouse expenses

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