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Question 13) (13.5 marks) Brilliant Accents Company manufactures and sells three types of kitchen faucets: Brass, Chrome, and White. Production takes 25. 25, and 10
Question 13) (13.5 marks) Brilliant Accents Company manufactures and sells three types of kitchen faucets: Brass, Chrome, and White. Production takes 25. 25, and 10 machine-hours to manufacture 7.000-unit batches of brass chrome, and white faucets respectively. The following additional data apply: Brass Chrome White Projected Sales in Units 30,000 50,000 40,000 Per Unit Data: Selling Price Direct Materials Direct Labour Overhead Cost Based on Direct Labour I Irs. (Traditional System) S60 $10 $22 S30 $8 $8 $40 S10 $11 $17.84 $5.35 $7.14 Brass Chrome White Hours Per 1.000-Unit Batch: Direct Labour Hours Machine Hours Setup Hours Inspection Hours 50 25 2 30 15 25 0.5 25 20 10 2 25 Total overhead costs and activity levels for the year are estimated as follows: Activity Overhead Costs Activity Levels Direct Labour Hours Machine Hours Setups Inspections $559,350 $529,200 $1,088.550 3,050 Hours 2,400 Hours 165 Setup Hours 3,150 Inspection Hours Required: ROUND AMOUNTS TO 2 DECIMAL PLACES WIIEN NECESSARY 1) Using the traditional system, determine the operating profit per unit for each style of faucet. Hint: The calculation is short. SCROLL DOWN: Requirements continued
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