Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kindly assist with answering the attached question Question 1 ( 2 5 marks ) The Dolly Company ( DolyCo ) produces three types

Kindly assist with answering the attached question Question 1
(25 marks)
The Dolly Company ("DolyCo") produces three types of dolls that they sell to the local market.
The three dolls namely Pony, Girly and Noku are manufactured from the same materials and
use the same grades of labour. Details of the standard cost per doll is given as follows:
Skilled labour is paid at a rate of N$13.13 per hour and semi-skilled labour is paid at N$7.88
per hour. Fixed costs per year amount to N$ 1575000.
The forecast sales for the forthcoming period are as follows:
In a recent management meeting, it emerged that another company that recently opened is
using the same skills that DollyCo is using. As a result, some employees have left DollyCo.
For the forthcoming period, only 75000 hours of skilled labour will be available and only 180
000 hours of semi-skilled labor will be available. These estimates have already considered the
possibility of overtime and these are the maximum labour times available.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Aat Management Accounting Budgeting

Authors: BPP Learning Media

1st Edition

1509718400, 978-1509718405

More Books

Students also viewed these Accounting questions

Question

What magazine and ads did you choose to examine?

Answered: 1 week ago