Echo Sports Company produces home basketball goal systems consis²ng of a stand, backboard, rim, and netand capacity to produce 800 goal systems per month
| There are three problems this week. Click on tabs at bottom of spreadsheet to go to problems 2 and 3. | |||
| Echo Sports Company produces home basketball goal systems consisting of a stand, backboard, rim, and net. The company has sufficient orders | |||
| and capacity to produce 800 goal systems per month. Manufacturing costs and other costs are shown below: | |||
| Administrative salary | 2,400.00 | ||
| Depreciation on office equipment | 400.00 | ||
| Depreciation on production equipment | 1,800.00 | ||
| Electric and other factory utilities | 1,400.00 | ||
| Factory supervisor salary | 2,000.00 | ||
| Fiberglass backboards purchased from another manufacturer | 30,400.00 | ||
| Insurance on factory building and contents | 600.00 | ||
| Maintenance costs on factory equipment | 1,200.00 | ||
| Nets and rims purchased from another manufacturer | 6,400.00 | ||
| Rent on factory building | 2,000.00 | ||
| Sales commissions | 1,600.00 | ||
| Steel pipe for stand fabrication | 14,920.00 | ||
| Supplies for administrative office | 600.00 | ||
| Wages for production workers | 14,720.00 | ||
| 80,440.00 | |||
| Enter each manufacturing cost in the appropriate column. | Direct | Direct | Manufacturing |
| Leave blank if it does not fil in any column. | Materials | Labor | Overhead |
| Administrative salary | |||
| Depreciation on office equipment | |||
| Depreciation on production equipment | |||
| Electric and other factory utilities | |||
| Factory supervisor salary | |||
| Fiberglass backboards purchased from another manufacturer | |||
| Insurance on factory building and contents | |||
| Maintenance costs on factory equipment | |||
| Nets and rims purchased from another manufacturer | |||
| Rent on factory building | |||
| Sales commissions | |||
| Steel pipe for stand fabrication | |||
| Supplies for administrative office | |||
| Wages for production workers | |||
| Totals | – | – | – |
| Compute the cost to produce 1 basketball goal system (cost per unit): | |||
| What will the cost per unit be if we increase production by 100 units with a proportional cost | |||
| increase for direct materials and direct labor but no increase in overhead cost? |
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