Question: Labor and material calculation $2$ of each with explanation $($Usage and price$)$

$$The following information is available about the product Alpha for the year ended $31$st March $2024.$

The company is planning to produce $1500$ units. There is no opening stock at the beginning of the period. Variable cost per unit is OMR $15$ and the proposed selling price is OMR $40$ per unit. The total fixed cost for the period is OMR $12,000$ out of which OMR $9000$ is fixed production cost.

The actual results were as follows: $-$

Sales $1300$ to $1400$ units$($ choose between $1300$ to $1400)$ Production $1600$ units

The standard cost for a unit of $$Product Alpha$$ is as follows:$-$

Direct Material $12$ kg at OMR $2\mathrm{.}5$ per kg

Direct Labour $8$ hours at OMR $10$ per hour

The actual results for Sage LLC are as follows:

Actual Production $2000$ units

Actual Direct material $20,000$ Kg at OMR $4\mathrm{.}5$ per kg

Direct Labour $15000$ hours worked at OMR $14$ per hour

As an expansion policy, CEO Mr$.$ Khalid has proposed to add an additional product Beta, and also revise the costing technique. He has suggested applying alternative management accounting techniques. The following revised data is available regarding the two products:

Units produced Product Alpha $(3000),$ Product Beta $(10,000)$

Selling price Product Alpha $(200),$ Product Beta $(90)$

Direct materials and labour per unit Product Alpha $(120),$ Product Beta $(90)$

Direct labour hours Product Alpha $(9000),$ Product Beta $(20,000)$

Direct labour hours per unit Product Alpha $(3),$ Product Beta $(2)$

The company has a total budgeted overhead of $103200.$ The following details are also available about overheads:

Quality Inspection Budgeted cost $(9000),$ Cost Driver $($Number of Inspections $),$ Product Alpha $(25),$ Product Beta $(35)$

Set$-$ups Budgeted cost $(15000),$ Cost Driver $($Number of set$-$ups $),$Product Alpha $(10),$ Product Beta $(5)$

Ordering Budgeted cost $(74000),$ Cost Driver $($Number of Orders $),$ Product Alpha $(24),$ Product Beta $(50)$

Material Handling Budgeted cost $(5200),$ Cost Driver $($Number of material handled $),$ Product Alpha $(28),$ Product Beta $(52)$

Total Cost Budgeted cost $103200$