Gamboge Company Analysis
You are doing a cost analysis for Gamboge Company.
Presented below is cost data for the cost data for the company and represents the monthly average of the previous 12 months of data.
Gamboge monthly average
Rent on plant building $ 100,162.00 Per Month
Plant Supervisor Salary $ 14,980.00 Per Month
Fixed plant Utility and General Maintenance Cost $ 75,092.00 Per Month
Variable plant Utility and General Maintenance Cost 5% Of Sales
Fixed Sales Staff Cost $ 39,904.00 Per Month
Variable Commisioned Sales 2% Of Sales
Fixed delivery Truck Cost $ 5,029.00 Per Month
Variable delivery Truck Cost 1% Of Sales
Direct Material Cost are $ 21.47 Per Unit
Direct Labor Cost are $ 10.10 Per Unit
Average monthly sales of 17867 units at $57.2 per unit.
Classify each of the cost as either fixed or variable cost.
Classify each of the cost as either product or period cost.
Classify each product cost as either direct material, direct labor or manufacturing overhead.
What is the average monthly Prime Cost using cost data presented?
What is the average monthly Conversion Cost using cost data presented?
Presented below is actual cost data for the company for one of its lines of production.
Month Units Produced Actual Cost
January 21,068 $ 839,892
February 23,098 $ 899,981
March 14,983 $ 704,758
April 16,927 $ 749,942
May 9,922 $ 449,852
June 18,931 $ 779,884
Using the High-Low Method answer the following questions.
What is the estimated variable cost per unit. Answer with 4 digits of precision and use that number for all calculations8) What is the fixed cost estimate.
In July the company anticipates that it will produce 17488 units. What is the expected cost?
HINT If units produced in August were 20,000
then the estimated cost will be $ 794,145.00
