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Posted on Sep 04, 2024

Results for the year ended August 31, 2020 Revenue Discount Net Revenue Cosmetic Food Total $12,000,000 $22,000,000 34,000,000 (1,200,000) (2,200,000) (3,400,000) $10,800,000 $19,800,000 $30,600,000 15,377,198

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Results for the year ended August 31, 2020 Revenue Discount Net Revenue Cosmetic Food Total $12,000,000 $22,000,000 34,000,000 (1,200,000) (2,200,000) (3,400,000) $10,800,000 $19,800,000 $30,600,000 15,377,198 Materials purchased 7,899,802 Accounting and legal Utility Costs- Head Office Utility Costs- Production Administrative salaries Inspection Costs Factory Insurance Sales commissions Interest on business credit line Management salaries (Omar, Anna, Ted $120,000 each) Property Taxes- Head Office Factory Building Amortization Office supplies, Courier and Postage Annual Business Licenses and Fees Warranty Program Costs Amortization Expense- Fabrication Equipment Amortization Expense-Office Equipment Business Liability Insurance Telephone Costs - Factory Telephone Costs - Head Office Anna's House Rent Labour-Assembly workers 2,000,000 Labour- Production supervisors Total Expenses Net Income (Loss) Current Year End Balances Cosmetic Raw Materials $1,500,000 Costs- Machines unfinished at year end 1,000,000 Costs- Machines complete but not sold 3,000,000 Last Year End Balances Raw Materials 1,000,000 Costs- Machines unfinished at year end 2,500,000 Costs - Machines complete but not sold $500,000 23,277,000 5,000 30,000 240,000 76,000 760,000 80,000 340,000 100,000 360,000 6,500 412,000 7,760 2,500 500,000 650,000 12,000 10,000 3,000 6,000 $15,000 5,500,000 600,000 32,992,760 ($2,392,760) Total $4,500,000 4,000,000 9,000,000 3,500,000 Food $3,000,000 3,000,000 6,000,000 2,000,000 5,000,000 $1,500,000 3,000,000 7,500,000 $2,000,000 Actual Results for Fiscal 2020 Net Revenue in $ Cosmetic Food $10,800,000 $19,800,000 Total $30,600,000 Direct Labour Cost in $ $2,000,000 $3,500,000 $5,500,000 # of Assembly Labour Hours 75,000 175,000 250,000 # of Fabrication Machine Hours 200,000 375,000 575,000 # of Machines sold 40 100 140 # of Machines Produced 70 120 190 Inspection Hours 420 2,160 2,580 11,250 22,800 34,050 Factory Area used (sq metres) Details of Proposed Customer Order Direct Materials $226,000 Direct Labour $57,000 5,642 Expected # of Fabrication Machine Hours Question: calculate the predicted total cost and proposed selling price for the customer ordwr using the following 1. difect labour dollar is the cost driver 2. machcine hours is the cost driver *assume a gross margin of 15% in order to determine the proposed selling price Show transcribed image text Results for the year ended August 31, 2020 Revenue Discount Net Revenue Cosmetic Food Total $12,000,000 $22,000,000 34,000,000 (1,200,000) (2,200,000) (3,400,000) $10,800,000 $19,800,000 $30,600,000 15,377,198 Materials purchased 7,899,802 Accounting and legal Utility Costs- Head Office Utility Costs- Production Administrative salaries Inspection Costs Factory Insurance Sales commissions Interest on business credit line Management salaries (Omar, Anna, Ted $120,000 each) Property Taxes- Head Office Factory Building Amortization Office supplies, Courier and Postage Annual Business Licenses and Fees Warranty Program Costs Amortization Expense- Fabrication Equipment Amortization Expense-Office Equipment Business Liability Insurance Telephone Costs - Factory Telephone Costs - Head Office Anna's House Rent Labour-Assembly workers 2,000,000 Labour- Production supervisors Total Expenses Net Income (Loss) Current Year End Balances Cosmetic Raw Materials $1,500,000 Costs- Machines unfinished at year end 1,000,000 Costs- Machines complete but not sold 3,000,000 Last Year End Balances Raw Materials 1,000,000 Costs- Machines unfinished at year end 2,500,000 Costs - Machines complete but not sold $500,000 23,277,000 5,000 30,000 240,000 76,000 760,000 80,000 340,000 100,000 360,000 6,500 412,000 7,760 2,500 500,000 650,000 12,000 10,000 3,000 6,000 $15,000 5,500,000 600,000 32,992,760 ($2,392,760) Total $4,500,000 4,000,000 9,000,000 3,500,000 Food $3,000,000 3,000,000 6,000,000 2,000,000 5,000,000 $1,500,000 3,000,000 7,500,000 $2,000,000 Actual Results for Fiscal 2020 Net Revenue in $ Cosmetic Food $10,800,000 $19,800,000 Total $30,600,000 Direct Labour Cost in $ $2,000,000 $3,500,000 $5,500,000 # of Assembly Labour Hours 75,000 175,000 250,000 # of Fabrication Machine Hours 200,000 375,000 575,000 # of Machines sold 40 100 140 # of Machines Produced 70 120 190 Inspection Hours 420 2,160 2,580 11,250 22,800 34,050 Factory Area used (sq metres) Details of Proposed Customer Order Direct Materials $226,000 Direct Labour $57,000 5,642 Expected # of Fabrication Machine Hours Question: calculate the predicted total cost and proposed selling price for the customer ordwr using the following 1. difect labour dollar is the cost driver 2. machcine hours is the cost driver *assume a gross margin of 15% in order to determine the proposed selling price Show transcribed image text