Hamer bv was initially exclusively concerned with the trade in steel. As of 1 January 2014, the company has also started producing and selling heating elements. For the calculation of the manufacturing cost of one unapproved heating element for The month of February 2014, the following data are used:

Material costs: 6 kilos to 3.50 per kilo;

Labor costs: 4 hours to 35,- per hour;

Machine costs: 1.5 hours at 40,- per hour.

The following is also the following fact;

The machine cost rate consists of 40% constant costs.

The outage is 15%. This failure has no value.

Every year an expanded advertising campaign is carried out. The variable advertising costs are 2.50 per heating element sold. The constant advertising costs allocated to February 2014 amount to 112,500,-. There are no further selling fees

A profit of 25% of the manufacturing cost of one approved product is calculated. The sales tax is 21%.

Due to seasonal influences, normal production and sales are not entirely parallel. For February 2014, normal approved production is 10,000 units and normal sales are 9,000 units. Actual approved production and sales in February 2014 are expected to be 9,500 units.

a.Calculate the standard manufacturing cost per approved heating element.

b.Calculate the commercial cost price per heating element.

c.Calculate the selling price of the primeval heating element including 21% VAT.

d.Calculate the expected transaction result for February 2014. Indicate whether this result is advantageous or detrimental.

e.Calculate the expected total occupancy result for the month of February 2014. Indicate whether this result is advantageous or detrimental.

f.Calculate the expected operating profit for the month of February 2014. Indicate whether this result is advantageous or detrimental.

Sum 4

Mass products A and B are manufactured in a manufacturing department. The same workers and the same installations are used for both products. The production and sales of A for 2014 budgeted at 8,000 units, that of B at 3,000 units. The management of raw material consumption for product B is 25% higher per unit than for product A. The total direct raw material consumption for 2014 was estimated at 94,000,-. The average hourly wage of the employees is15,- product A requires a processing time of two man hours and the product B of three man hours per unit of product. The indirect costs of the manufacturing department have been budgeted for 2014 as follows:

Variable 75,000.-

Constant 60,000++

135,000

For the cost price calculation, the indirect costs are passed on with a surcharge in euros per man-hour. The normal occupancy of the manufacturing department is 30,000 man-hours per year. The selling costs of products A and B are budgeted at 3,- and 4,- per unit of product respectively. These costs are considered to be entirely variable. Product A is sold with a profit premium of 6.,- per unit and product B with a profit surcharge of 6.50 per unit.

a.Calculate the sales price of unit A.

b.Calculate the sales price of unit B.

c.Calculate the budgeted profit for 2014.

Sum 5

A manufacturer uses the following data from 2013 to estimate manufacturing costs and commercial cost prices in 2014.

Direct production costs:

Raw material consumption400,000

Direct wages 240,000

Indirect production costs:

Constant 240,000

Variable120,000

General production costs:

Constant 40,000.-

Variable 32,000

In 2013, production was 80% of normal production. In order to eliminate the impact of price changes in direct production costs on premiums for indirect and general production costs, indirect production costs are expressed in euros per kilo of raw material and general production costs in euros per man-hour. The above-mentioned cost amounts for direct production costs are based on the following prices:

Raw materials 20,- per kilo;

Direct wages 30,- per man hour.

a.Calculate the storage in euros per kilo for the constant indirect production costs.

b.Calculate the storage in euros per kilo for the variable indirect production costs.

c.Calculate the storage in euros per man-hour for the constant general production costs.

d.Calculate the storage in euros per man-hour for the variable general production costs. Calculate the manufacturing cost of order P40, the direct cost of production of which is as follows:

Raw material consumption 12,5 kilos at20,-=250,-

Direct wages 6 hours at30,- = 180,-

430,-