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Quiz 4:Cashflow, Investment Mathematics & Costing Question 6, 7 and 8 Information A firm makes three products and seeks to calculate the profitability of each
Quiz 4:Cashflow, Investment Mathematics & Costing Question 6, 7 and 8 Information A firm makes three products and seeks to calculate the profitability of each Product A Product B Product C Units Produced 36000 27000 90.00 140.00 9000 Selling Price per Unit 165.00 Manufactuering Details Number of Production Runs Number of hours per setup Number of setup Hours per Product 15 45 25 175 56 Raw Materials Number of Components per Unit Cost per Component Raw Materials Cost per Unit 6.00 36.00 10.00 60.00 4.00 36.00 Direct Labour Direct Labour hours per Unit Direct Labour Cost/hour Direct Labour $per Unit 0.1 95.00 9.50 0.20 95.00 19.00 0.25 95.00 23.75 Machine Time hours per Unit 0.2 0.5 0.8 Overhead Cost Setup Labour Machine Running Cost Purchasing Dept Cost Engineering Dept Cost 123,085 900,000 550,000 500,000 2,073,085 Total Overhead Cost Required Question 6 Question 7 Question 8 Allocate Overhead based on Labour Cost and calculate the Cost per Unit and the Contribution Margin per Unit: Allocate Overhead based on Machine Time and calculate the Cost per unit and Contribution Margin Allocate Overhead based on Activity Based Costing and calculate the Cost per Unit and Contribution Margin per Unit
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