Question 1 to 4.

Full answer please.

Written Assessment

Task 5 - Economic Considerations 1. Explain why the cost of a production line supervisor is not considered as part of direct labour cost, but rather as an overhead cost. 2. A company produces a product for which the direct labour cost is $45.00 per unit, direct material cost is $63.00 per unit. Total budgeted overhead is $450,000 and budgeted production (and sales) are 11,500 units per annum. Determine the overhead allocation rate by each of the three methods given in the notes. 3. The company in the question above marks up the total cost by 25% in order to make a profit. Determine: a) Selling price per unit b) Break-even quantity c) Total profit if sales and costs are as budgeted 4. Using the information from question 3 above, draw a graph of cost & revenue of production against units sold showing the sales for the year and show the total revenue, total cost and the break-even point