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Monze Ltd produces two models of a cellar phone super and deluxe and operates at capacity. Data related to the two models are presented below:
Monze Ltd produces two models of a cellar phone super and deluxe and operates at capacity. Data related to the two models are presented below: SUPER DELUX Annual Production in units 50 000 100 000 Direct material cost K150 000 K300 000 Direct labour cost K50 000 K100 000 Direct labour hours 2500 5000 Machine hours 25 000 50 000 Number of production runs 50 50 Inspection hours 1000 500 Total manufacturing overhead costs are as follows: Total Machining costs K375 000 Setup costs K120 000 Inspection cost K105 000 Required 1. For each overhead cost pool, choose a cost driver and calculate the manufacturing overhead cost per unit for each model. 2. Compute the manufacturing cost per unit for each model of product
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