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A company has calculated Overhead Absorption Rates (OAR) for its two cost centres: Baking Cost Centre: 4 per machine hour Decorating Cost Centre: 0.50 per
A company has calculated Overhead Absorption Rates (OAR) for its two cost centres: Baking Cost Centre: 4 per machine hour Decorating Cost Centre: 0.50 per direct labour hour 3a For a customer order with the specifications below, what is the: the PRIME COST (4 marks) the FULL COST(4 marks) the SELLING PRICE(2 marks) Ingredients 60 Waged labour 2 hours @ 6 per hour Baking hours. 3 hours Decorating hour 4 hours Mark up 30% (on full cost) 3b) For each of the customers below discuss TWO NON-FINANCIAL considerations that the company should consider when deciding whether to accept the customer's order: i) A local customer (5 marks) ii) An overseas customer
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