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Question 2 Athena Boxes manufactures two types of cardboard boxes used in shipping canned food, and fruit and vegetables. The canned food box (type C)
Question 2 Athena Boxes manufactures two types of cardboard boxes used in shipping canned food, and fruit and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labour requirements: Type of box requir xes: Paperboard ($0.30 per kg) Corrugating medium ($0.15 per kg) 30 kg 20 kg 70 kg 30 kg t Tabouirrequired per Twboxes- ($18 per hour) The following manufacturing overhead costs are anticipated for 200X. The 495 000 units for each type of box. Manufacturing overhead is applied on the basis of direct labour hours. 0.25 hour 0.50 hour predetermined overhead rate is based on a production volume of Indirect materials Indirect labour Utilities Land tax and council rates Insurance Depreciation $15 750 75 000 37 500 27 000 24 000 43 500 Total $222 750
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