Chat with us, powered by LiveChat A computer manufacturer produces three types of devices: mobile ??phones, tablets, and computers. For the production of these t - EssayAbode

A computer manufacturer produces three types of devices: mobile ??phones, tablets, and computers. For the production of these t

              A computer manufacturer produces three types of devices: mobile   phones, tablets, and computers. For the production of these three devices you   have the following information:       Phone   Tablet   Computer       Material cost per unit   £90.00  £140.00  £315.00       Direct labor hours per   unit    2.00    2.50    4.00        Budgeted units    15,00,000.00    9,00,000.00    12,00,000    1,00,50,000                   Labor cost per hour £8      £7.96  ( 80,000,000 /   10,050,000)                Overhead costs per annum             Utilities £20,000,000             Rent £15,000,000             Audit and legal £5,000,000             Administrative   staff £40,000,000           Total £80,000,000             ABC   analysis suggested that overhead costs are distributed to the three products   according to the table below:    Overheads   Phone Tablet Computer Phone   Tablet   Computer       Utilities   £8,000,000 £5,000,000 £7,000,000  80,00,000    50,00,000    70,00,000        Rent   £8,250,000 £2,250,000 £4,500,000  82,50,000    22,50,000    45,00,000        Audit   and legal £2,900,000 £1,250,000 £850,000  29,00,000    12,50,000    8,50,000        Administrative   staff £23,200,000 £6,000,000 £10,800,000  2,32,00,000    60,00,000    1,08,00,000           4,23,50,000    1,45,00,000    2,31,50,000                     For each of the three products, the company aims at a different   percentage for profit. Under the full absorption costing method and the   targeted profit percentage, the prices of the three products should be:     Phone Tablet Computer             Full   costing price £170.69 £233.87 £435.67                         

    Related Tags

    Academic APA Assignment Business Capstone College Conclusion Course Day Discussion Double Spaced Essay English Finance General Graduate History Information Justify Literature Management Market Masters Math Minimum MLA Nursing Organizational Outline Pages Paper Presentation Questions Questionnaire Reference Response Response School Subject Slides Sources Student Support Times New Roman Title Topics Word Write Writing