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Question 2 Wilderness Ltd is a prominent manufacturing firm with three production divisions (fabrication, assembly, and finishing). The subsequent unit costs pertain to the
Question 2 Wilderness Ltd is a prominent manufacturing firm with three production divisions (fabrication, assembly, and finishing). The subsequent unit costs pertain to the company's top-selling item, the Tracker: Direct Materials Direct Labour Hours Direct Labour Cost Machine Hours Machine Hour Cost 30 0.6 hours per unit 20.00 per hour 0.85 hours per unit 40 per hour The following production information has been obtained to produce 150 units of Tracker: Activity cost information Number of production set-ups 8 Assembly production run time (hours) 5 Number of production inspections 15 The following cost driver rates are applied to the relevant activities above: Cost of activities A production set-up 200 An hour on the assembly production line A production inspection 60 55 Wilderness Ltd requires a 20% profit margin on all sales. Required: Calculate the unit selling price of the Tracker using the information above.
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