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A manufacturing company in Indonesia provides 2 kinds of products i.e. Product-1 and Product-2. The company also has 2 (three) market area i.e. Area-1

 

A manufacturing company in Indonesia provides 2 kinds of products i.e. Product-1 and Product-2. The company also has 2 (three) market area i.e. Area-1 and Area-2. The company predicts it sales and related cost for next year as follow Sales Prediction Product Product-1 Product-2 Final Product Inventory Inventory Product-1 Product-2 Required Labor Hour Product Product-1 Product-2 Area-1 718 918 Overhead Beginning Inventory 18 42 Unit Labor Hour 7,00 4,00 Manhour Related Machine hour Related Sales Area-2 390 318 Ending Inventory 45 18 Rate/LH 5,00 7,00 Unit Price 124 125 Required Machine Hour 180 1800 Unit cost of Direct Material Unit Cost Material for Product-1 Product-2 Fixed Cost Product Product-1 Product-2 Unit Machine Hour 3,00 5,00 ($)/set 14 16 Variable Cost (USD/hour) 0,2 0,3 Calculate: a. Sales Budget b. Production plan and production budget. C. Gross profit for Product-1 and gross profit for Product-2. Assume no beginning and ending material inventory

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