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The SONI factory produces two types of refrigerators. Type 1 (2 door refrigerator) and type 2 (1 door refrigerator). Here is the data for the
The SONI factory produces two types of refrigerators. Type 1 (2 door refrigerator) and type 2 (1 door refrigerator). Here is the data for the two products:
| Usage Size | Activity Cost Data | |||
Activity | |||||
Type 1 | Type 2 | Total | Activity | Activity Costs | |
Unit produced | 50 | 75 | 125 | Equipment Settings | 1250 |
Main Costs | 500 | 750 | 1250 | Transfer of Goods | 1000 |
Direct Labor Hours | 30 | 70 | 100 | Machining | 1800 |
Machine Clock | 10 | 40 | 50 | Assembly | 800 |
Hours of Setup | 5 | 2 | 7 | total | 4850 |
Number of Displacement | 8 | 6 | 14 |
Questions
Based on this data, if you as a production manager are asked to calculate:
1). The ratio of consumption of each product
2). Activity rates for each product
3). Unit production cost based on ABC
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