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Question A1 Medi Ltd. manufactures media storage devices. Department A is responsible for the electronic circuitry within the devices. Department B applies the plastic covering
Question A1 Medi Ltd. manufactures media storage devices. Department A is responsible for the electronic circuitry within the devices. Department B applies the plastic covering and packages products for shipment. A recent order for 4,000 devices from the XYX Company was received to produce in July. The selling price for this product was 14 per unit. For this order, the departments incurred the costs shown below to complete and ship the goods in July. Department A B 29,440 3,920 Direct materials used Direct Labour Manufacturing Overhead 6,800 7,360 2,560 4,800 (a) Calculate the total cost and the cost per unit for the XYX company order. (b) Was the selling price adequate? List the assumptions and/or computations upon which you based your answer. (c) What suggestions would you make to Medi Ltd.'s management concerning the pricing of future orders
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