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( 1 0 H w x GuESTION 2 The procuct design and developmert leam at CGH Manufacting Entarprises has corpleted the developmert of a protetype
GuESTION The procuct design and developmert leam at CGH Manufacting Entarprises has corpleted the developmert of a protetype of a product io be manufacared durng the forthcoming quarter. The protolype passed through the trot producion departenents and The following buigeted iflormation on the prolotype is available: The following intormation reiates io the probotype: tableDirect makeral requisfioned,R ADirect materal retumed to store,R Dired labour recorded against the prototype: tableProduction depirtment A hours at D per hourProcuction department, hours at per hourProduction department C hours at Robi. of per hour A special machine was hired for the prodaction of the probolype at a cost of R Machine hours recorded against the protolype: tableProducton department A hoursProduction department B hoursProduction department C hours Price quoled for the prototype, including delivery R CGH Manufacturing Enlerprises absorts nonproduction overhead using the following predetermined overhead absorption rates: tableAdministration and general overtead, of production costsSeling and distribution overhead, of seling price REQUIRED: The product design and development team is convinced that the manulacturing and nonmanufacturing costs of the prototype are unikely io be sigrificantly different from those of the product. Therefore, present an analysis of the lotal cost and profit or loss attributable to a unit of the product. END OF PAPER
GuESTION
The procuct design and developmert leam at CGH Manufacting Entarprises has corpleted the developmert of a protetype of a product io be manufacared durng the forthcoming quarter. The protolype passed through the trot producion departenents and The following buigeted iflormation on the prolotype is available:
The following intormation reiates io the probotype:
tableDirect makeral requisfioned,R ADirect materal retumed to store,R
Dired labour recorded against the prototype:
tableProduction depirtment A hours at D per hourProcuction department, hours at per hourProduction department C hours at Robi. of per hour
A special machine was hired for the prodaction of the probolype at a cost of R
Machine hours recorded against the protolype:
tableProducton department A hoursProduction department B hoursProduction department C hours
Price quoled for the prototype, including delivery R
CGH Manufacturing Enlerprises absorts nonproduction overhead using the following predetermined overhead absorption rates:
tableAdministration and general overtead, of production costsSeling and distribution overhead, of seling price
REQUIRED:
The product design and development team is convinced that the manulacturing and nonmanufacturing costs of the prototype are unikely io be sigrificantly different from those of the product. Therefore, present an analysis of the lotal cost and profit or loss attributable to a unit of the product.
END OF PAPER
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