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Based on WireBuzzs current traditional costing system, as outlined in the case, calculate the total cost and unit cost expected for the PBP and the
Based on WireBuzzs current traditional costing system, as outlined in the case, calculate the total cost and unit cost expected for the PBP and the LWTP wall key pads.
Cannot use a plant wide rate to solve this question. Can use other forms of traditional costing systems.
PBP | LWTP | Total | |
Selling price | $170.00 | $340.00 | |
Units in 2021/22 | 62,000.00 | 35,000.00 | 97,000.00 |
Traditional costing system | |||
PBP | LWTP | Total | |
Budgeted direct materials cost | $5,580,000.00 | $5,250,000.00 | $10,830,000 |
Direct labour hours per unit (20$/h) | 1.5 | 4 | |
Machine hours per unit | 1 | 2 | |
Direct labour cost | $1,860,000.00 | $2,800,000.00 | |
Manufacturing Overheads | PBP | LWTP | Total Costs |
Material-related | $837,000.00 | $787,500.00 | $1,624,500.00 |
Variable manufacturing | $465,000.00 | $700,000.00 | $1,165,000.00 |
Machine-related | $1,364,000.00 | $1,540,000.00 | $2,904,000.00 |
$5,693,500.00 | |||
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