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Dubai Techno Company has always estimated the support cost of its activities with a 80 percent (markup) over its material costs. An activity analyst suggest
Dubai Techno Company has always estimated the support cost of its activities with a 80 percent (markup) over its material costs. An activity analyst suggest that the support costs are driven by the number of manual operations performed on each product, estimated at $12 per manual operations. 1. Based on the Activity Analysis Method, produce a recap on measurement of cost behavior: Product (A) Product (B) Material cost/u 120 210 Manual operations 15 8 2. What would be the decision if the material per unit for both products increase by 15 percent and estimated costs per manual operation decrease by 5 percent for both products. Show computation
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