Management accounting and finance

Comfy Limited manufactures glass ornaments and housewares. The business makes use of unskilled labour and provides training to do hand cralting of the goods. In January, they decided to add a fruit bowl to the range. It took 45.60 hours to complete the rst two fruit bowls. It was found that labour hours reduced as cumulative output increased. and it is expected that this trend will continue until 64 fruit boats have been manufactured. The total number of hours to complete the next two fruit bowls was 41.04 hours. The labour and material costs to manufacture the rst four fruit bowls. which have already been sold. were as follows: 0 Direct materials: R1 360 . Direct labour: R1 420 Additional information: . A gilt shop owner saw these fruit bowls and has asked for a quotation for 12 to add to its range of products. 5/8 - Since the rst four fruit bowls were manufactured, the price of material increased by 8%. and the cost of labOur by 15%. - Comfy Limited paid the designer of the fruit bowl R1 600. They have committed to producing and selling only 64 of these fruit bowls which wil be complete within the next few months. - Sundry materials amountto R150 per fruit bowl. - Other variable manufacturing overheads are allocated at R100 per direct labour hour. - Monthly xed costs of the business amount to R15 201]. of which 10% applies to the above order. Raguired: a) Calculate the teaming curve (4 marks} b) Calculate the quotation price for the 12 fruit bowls if the business requires a prot margin of 25% on quotation price. Note: round off ALL calculations to the nearest two decimal places. (11 marks} c) Calculate the total time required to manufacture units 1? to 32 (5 marks} Note: Round off all calculations to two decimal places