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Question 2 Birdyblue Limited is a large manufacturing company that has three production departments (processing, assembly and finishing). The following unit costs relate to the
Question 2 Birdyblue Limited is a large manufacturing company that has three production departments (processing, assembly and finishing). The following unit costs relate to the company's bestselling product, the Nonian; Direct Materials $48.00 Direct Labour Hours 0.25 hours per unit Direct Labour Cost f16.00 per hour Machine Hours 0.9 hours per unit Machine Hour Cost f34 per hour The following production information has been obtained for the production of 250 units of Nonian; Activity cost information Number of production set-ups 9 Assembly production run time (hours) 6 Number of production inspections 15 The following cost driver rates are applied to the relevant activities above: Cost of activities A production set-up E 120 An hour on the assembly production line E 40 A production inspection E 35 Birdyblue Limited requires a 25% profit margin on all sales. Required: Calculate the unit selling price of the Nonian using the information above
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