-nt Accounting ILV W2021 (B_BC120) INDIVIDUAL ASSIGNMENT no.1, due on Sun 07 Nov 2021, 23:59h L ASSIGNMENT no. 1: Case "High Kitchen" Calculate the unit contribution as indicated below and select the correct answers from the drop-down menus The unit contribution of each Type C door in Period 1 is per unit Is the unit contribution of each Type C door different in Period 2? per unit The unit contribution of each Type C door in Period 21 29.96 4.40 16.40 1.36 33.00 Next page page |84,960) (84,960) Overheads (47,832) Profit 240 This meant a bonus of only 24 (that is, 10% of 240) for Sally. This was a disappointment after Period 1's good results. Sally was fairly relaxed about this because she expected demand to pick up as a result of HK's new lower prices. When the product costings were done for Period 2, however, a much more worrying picture emerged. The product costings for Period 2 were as follows: Door Labour Labour Material Overhead Total Subcontractor's type time cost cost cost cost price A 5 mins 1.50 10.00 6.27 17.77 17.50 B 9 mins 2.70 22.00 11.28 35.98 36.00 12 mins 3.60 25.00 15.04 43.64 45.00 * The overhead absorption rate 75.21 per direct labour hour (that is, 47,832/636). The income statement for Period 2 was: WDD income statement for Period 2 Sales Type A (2,496*17.50) 43,680 Type B (2,000*36.00) 72,000 Type C (640*45.00) 28,800 144,480 144,480 Labour 636 hours @ 18 (11,448) Materials Type A (2,496*10.00) 24,960) Type B (2,000*22.00) (44,000) Type C (640*25.00) |(16,000 (84,960) (84,960) Overheads (47,832 Profit 240 This meant a bonus of only 24 (that is, 10% of 240) for Sally. This was a disappointment after out this because she eynerted demand to The WDD makes three doors. The total overhead cost for the WDD is 45,600 for each period (all fixed). This includes Sally's 40 hours of managerial time. The initial product costings were as follows: Door Labour Labour Material type time cost cost Overhead cost Total cost Subcontractor's price 1.50 5 mins 10.00 5.00 16.50 17.50 2.70 22.00 9.00 33.70 36.00 9 mins B 12.00 3.60 25.00 40.60 45.00 12 mins This led to a profit for the department as follows: WDD income statement for Period 1 Sales Type A (2,880*17.50) 50,400 Type B (2,400*36.00) 86,400 Type C (800*45.00) 36,000 172,800 172,800 Labour 760 hours @ 18 (13,680) Materials Type A (2,880*10.00) (28,800) Type B (2,400*22.00) (52,800) Type C (800*25.00) 20,000) (101.600) (101,600) Overheads 145.600) Profit 11.920 This meant that Sally received a bonus of 1,192 (that is, 10% of 11,920). Things seemed to be going well for her