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

## 14 Jan 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

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