Marginal Costing & Decision Chapter 19 Data regarding the machines is as follows $330 150 MACHINE $200 100 4. $600 200 Set-up costs per order Number of rods produced per machine-hour Number of machine operators Variable factory overhead for each machine is $12 per direct labour hour. Direct material needed to produce 100 rods is $300, whichever machine is selected. Machine operators are paid $10.50 per hour. REQUIRED Order P235 has been received for 3000 rods. (i) Calculate the costs of producing order P235 on each machine. (i) Advise the production manager which machine to use for order P235 to minimise (a) [13) costs. It has been suggested that by adding one additional operator to each machine, there would be an efficiency saving of 10% on direct materials and the rate of production would increase by 20%. REQUIRED (b) Assuming that the additional operator is employed on each machine, recalculate your answer 112] (c)) State how your advice to production manager shoyld differ if the additional 12) (i) State whether the additional operator should be retained for each machine. Explain 121 for order P235. operator is employed your reasoning