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Exercise 3 Meubelfabriek Heijnen by makes office chairs and office tables. Heijnen bv is still experiencing the consequences of the economic crisis. For 2020 production
Exercise 3 Meubelfabriek Heijnen by makes office chairs and office tables. Heijnen bv is still experiencing the consequences of the economic crisis. For 2020 production is expected of 75% of the normal capacity utilization. For this expected production, Heijnen by has budgeted the following costs for 2020: Direct material 2,700,000. Direct labor 3,300,000. Indirect costs 1,225,000. Total costs 7,225,000. In its cost price calculation, Heijnen bv uses the sophisticated storage method based on normal occupancy. The expected direct material costs are fully proportional to the volume of production. The budgeted direct labor costs consist of 80% fixed costs and 20% proportionally variable costs. The amount of the budgeted indirect costs is broken down as follows: 40% of the indirect costs are related to direct material costs. Of these indirect costs, 400,000 is constant. The other 60% of the indirect costs are related to direct labor costs. Of these indirect costs, 180,000 is constant. A) In addition to the refined storage method given, list and briefly describe another storage method to separate the indirect costs. B). What is the typical difference between direct and indirect costs? C). Calculate the total direct material costs for Heijnen by under normal utilization. D). Calculate the total direct labor costs for Heijnen by under normal staffing. E). Calculate the applied mark-up percentages for the indirect costs for Heijnen by rounded to one decimal place. F). Calculate the cost price of an office chair for 2020, if it costs 50
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