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1. Footsteps & Co. specialises in making footwear. It makes three types of shoes- Leather Oxfords, sneakers and casual wear. During the month of July
1. Footsteps & Co. specialises in making footwear. It makes three types of shoes- Leather Oxfords, sneakers and casual wear. During the month of July they had the following expenses and overheads: Particulars Oxfords Sneakers Casual Leather per shoe $10 $5 $7 No. of shoes produced 150 200 250 Labour hours per shoe 2 hours 1 hour 1.5 hour Wage rate per hour $10 $8 $5 Machining cost (Total) $10,000 $8000 $5000 Other Overheads Rent of the factory $18,000 Meals for Workers $12,000 Storekeepers' Salary $3,000 Other Information given to you: Activity Driver Oxfords Sneakers Casual Stock value $15,000 $8000 $7000 Floor area occupied 1000 sq feet 1200 sq feet 1500 sq feet Machine hours 200 hours 150 hours 50 hours No. of employees 20 40 30 Required: a) Find the activity rate for each shoe. b) Find the cost of producing each shoe brand, both total and unit cost, under ABC method. c) Assuming 15% is the profit to be made on each of the shoe brand, what will be the unit sale price
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