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Green (Pty) Ltd manufactures a standard type of tricycle. The following are the budgeted costs: Unless stated otherwise, all amounts exclude VAT. Raw materials
Green (Pty) Ltd manufactures a standard type of tricycle. The following are the budgeted costs: Unless stated otherwise, all amounts exclude VAT. Raw materials used Direct labour R950 per unit produced R300 per unit produced Factory foreman's wages R4 800 per month Rental of factory Rates and taxes Sales representatives' commission Advertising costs Variable indirect materials used Insurance on factory Quality controller R7 200 per month R1 550 per month R200 per unit sold R15 500 per month R70 per unit produced R990 per month R350 per month The business intends to sell the manufactured tricycles at R3 000 each plus VAT @ 15%.
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