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1.Bellfont Company produces door stoppers.

1.Bellfont Company produces door stoppers. August production costs are below: Door Stoppers produced 70,000
Direct material (variable) $20,000

Direct labor (variable) 40,000

Supplies (variable) 20,000

Supervision (fixed) 28,300

Depreciation (fixed) 21,600

Other (fixed) 3,400

In September, Bellfont expects to produce 100,000 door stoppers. Assuming no structural changes, what is Bellfont’s production cost per door stopper for September?

2.Aaron’s chairs is in the process of preparing a production cost budget for August. Actual costs in July for 120 chairs were:

Materials cost $4,500

Labor cost 2,890

Rent 1,500

Depreciation 2,500

Other fixed costs 3,200

Materials and labor are the only variable costs. If production and sales are budgeted to change to 100 chairs in August, how much is the expected total variable cost on the August budget?

3.Stellar Company has the following sales, variable cost, and fixed cost. If sales increase by $10,000 then their profit increases/decreases by how much?

Sales $50,000

Variable Costs $9,200

Fixed Costs $29,000

 
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