Plush leather seats, selectable driving modes, executive-class seating, and more make the Lexus LS one of the most comfortable cars on the road. Climate Concierge, a Mark Levinson surround-sound system, and available rear entertainment are just some of the goodies available on this model.
What are total budgeted production costs for the year? (CIA adapted) $2,180,000 Brown Company has developed the following sales projections for the calendar year: Normal cash collection experience has been that 50% of sales is collected during the month of sale and 45% in the month following sale. The remaining 5% of sales are never collected).
1 This is because fixed costs are now being spread thinner across a larger production volume. 2  For example, if the business above spends $50,000 per year in rent, rent costs are allocated to each unit at $0.10 per unit. The total variable costs for the year are therefore (35,000 + 20,000 + 100,000), or $155,000. 2  These costs are directly related to the production volume for that year.