total labour cost 195270

fixed cost per unit is calculated using labour hrs

A B C
labour hrs 0.1 0.15 0.2
units 15000 12000 18000
total hrs needed 1500 1800 3600
total hrs 6900
labour cost per hr 28.3 oar(overheard absorption rate)
f.c for each unit 2.83 4.245 5.66

A B C
materials 2 3 4
total materials 30000 36000 72000
total cost 36000 43200 86400
material cost per unit 2.4 3.6 4.8

A B C
labour hrs 0.1 0.15 0.2
labour cost per unit 1.48 2.22 2.96
full cost per unit 6.71 10.07 13.42

activity based costing

cost pool no. cost driver no.
machine set up cost 26550 production runs 36
running costs 66400 machine hrs 32100
procurement costs 48000 purchase orders 94
delivery costs 54320 deliveries 140

we need to multiply theses cost per unit with the each units corrresponding data
in the case of set ups cost we need to multiply the cost per unit with the set ups of annum of that product
A B C
machine set up cost 11800.00 8850.00 5900.00
running costs 15514.02 17375.70 33510.28
procurement costs 12255.32 14297.87 21446.81
delivery costs 18624 11640 24056
total cost 58193.34 52163.57 84913.09
total units 15000 12000 18000
f.c per unit 3.88 4.35 4.72
material cost per unit 2.4 3.6 4.8
labour cost per unit 1.48 2.22 2.96
fiull cost 7.76 10.17 12.48
Q)267
absorption costing
total fixed costs 400000
total activity 40000
OAR 10

labour costs 15
gc ex
material costs 3500 8000
labour hrs 300 500
site visits 1 6
planning documents 1 5

gc ex
f.c absorption 3000 5000

cost pool cost driver

supervisors 90000 site visits 500
planners 70000 planning docs 250
property related 240000 labour hrs 40000

gc ex
supervisors cost 180 1080
planning costs 280 1400
property related 1800 3000
total fixed costs 2260 5480
material cost 3500 8000
labour costs 4500 7500
10260 20980

Q)268
ABSORPTION COSTING
total fixed costs 2880000 machine hrs
total activity 120000.00
oar 24.00
0.1
cb tj
f.c per unit 2.40 4.00
paper cost 400g at 2 per kg 100g at 1 per kg
0.8 0.1
printing cost 50 ml at 30 per ltr 150ml at 30 per ltr
 1.5 4.5
machine cost 1.2 2
total cost 5.90 10.60
sp 9.3 14
margin 3.40 3.40

ABC COSTING
cost pool cost driver
property costs 2160000 machine hrs 120000
quality control 668000 no. of inspections 200
set up costs 52000 no. of set ups 16

cb tj
property costs 1.8 3
quality control 0.6012 0.55666666666667
set up costs 0.013 0.325
f.c per unit 2.41 3.88
paper cost 0.8 0.1
printing cost 1.5 4.5
machine cost 1.2 2
5.91 10.48
sp 9.3 14
margin 3.39 3.52

TYA)1
absorption costing
total fixed costs 432000
total activity 60000
oar 7.2
plus d plus
f.c per unit 7.2 10.8
direct cost 12 24
total cost 19.2 34.8

ABC COSTING
cost pool cost driver
set up costs 73200 no. of set ups 732
special parts 60000 no. of special parts 120000
material cost 63000 no. of batches 252
handling 19800 no. of orders 150
overheards 216000 labour hrs 60000
 plus d plus
set up costs 1200 72000
special parts 12000 48000
material cost 3000 60000
handling 1320 18480
overheards 86400 129600
total 103920 328080
f.c per unit 4.33 13.67
direct cost 12 24
total cost 16.33 37.67

TYA)3
throughput 7 factory cost
time on bottleneck 2 total factory hr
return on factory hr 3.5 factory cost/hr
tpar 1.4000

TYA)4
A B C
sales 1.4 0.8 1.2
material cost 0.6 0.3 0.6
throughput 0.8 0.5 0.6
throughput for 1 min 0.16 0.25 0.2
time required hrs 0.083333333333333 0.03333333333333 0.05
166.666666666667 66.6666666666667 125
units that can make 700 2000 2500.00
116667 183.333333333333 58.33
total throughput 560 1000 1500
return on factory hr 14
factory cost/hr 13.6
tpar 1

production cost 1 4.5 8

marketing cost 12.9
r & d cost 20
total life cycle costs 48.4
total units 20
lifecycle cost per unit 2.42

total batches 5 8
total inspectiuons 20 8 28
i.c per batches 8928.57142857143
i.c of alpha 178571.428571429
i.c per unit 71.43

set ups
a has 1000 units in 1 set up so total set up 20
b has 5000 units so b's 4
500
for A 10000
0.5

total fixed costs 420000

total activity 66000
OAR 6.36363636363636
f.c per unit 31.82

a has 2000 units in 1 set up so total set up 20

b has 5000 units so b's 8
28
setup cost per activity 3000
set up costs for B 24000
set up cost per unit 0.6

cost pool cost driver

purchase cost 145000 no. of orders 160
set up costs 175000 no. of set ups 100
volume relaetd 100000 total units 13200

alpha beta
purchase cost 67968.75 77031.25
set up costs 70000 105000
volume relaetd 9090.9 90909.1
total costs 147059.659090909 272940.340909091
122.55 22.7450284090909

2 20000
80000
4 20000
160000 240000
120

12000 x y z
5 5 3
60000 60000 36000
60 30 12
 8 60 60 60
7.5

D R P
total batches 1000 2000 2000
total setups 3000 8000 12000

total setups cost 150000

oar 6.52173913043478
set ups cost of r 52173.9130434783
set up cost per unit 0.52

target sp 56
mark up on cost 25% 11.2
profit 11.2
cost 44.8
cost per product cost of 1
material cost 16 2 4
total cost 20
labour cost for 2 hrs 24.8
12.4 for 1 hr

1 2 3
units 2000 5000 7000
v.c 4600 9000 8400
f.c 3000 3500 4000
v.s.c 1000 2000 2800
f.s.c 1500 1600 1600
adm costs 700 700 700
10800 16800 17500

f.c per unit 0.75

3
total fixed cost 900000
direct man costs 6000000
dep costs 500000
design costs 800000
decommission costs 20000
total cost 8220000
lifecycle cost 27.4
 2020 2021 2022
units 10000 12000 11100
r & d cost 950000
mark cost 230000 120000 20000
prod cost 4500000 5160000 3219000
warranty cost 300000 360000 444000
end costs
total cost 5980000 5640000 3683000

x y z
throughput contr 20 30 4
return per factory hr 2 1.5 1.6

bottleneck resource is p
throughput 17
5 12
60

throughput sp 9000
material cost 3000
return on factory hr 30 6000
factory cost/hr 3500
17.5 1.7

throughput 28000
15000
factory cost 11550
1.3

sp 100
vc 60
contribution 40
breakeven units 6250
breakeven sales 0.4 c/s ratio
625000
340000
8500
mos 5750
 48%

budgeted sales 6750 bud sales-breakeven units/bud sales

mos 21.05 6750-x/6750
breakeven units 5189.3
c/s ratio 35% x
contribution 25.2
fixed costs 130770.7 f.c is same as the level of contribution

total contribution 400000 150000 550000

total sales 1000000 600000 1600000
w c/s ratio 0.34375
total fixed cost 200000
breakeven sales 581818

balls sp 8
vc 5
contribution 3
raquets sp 4
vc 2.6
contribution 1.4
mix 2:01
fixed costs 407000
budgeted sales 1250000

breakeven sales 407000

contribution per mix 6 1.4
total mixes 55000 7.4
balls 110000 880000
raquets 55000 220000
breakeven sales 1100000
mos 12%

j k l
units 10000 10000 50000
sales 200000 400000 200000
v.c 140000 80000 210000
contribution 60000 320000 -10000
c/s ratio 0.3 0.8 -0.05
2 1 3
first cordinates when the sales volume is 0
fixed costs 240000
1) (0,240).

2) product k total sales 400000

contribution 320000
profit 80000
(400,80)

3) product k , j and m total sales. 800000

contribution 440000
profit 200000
800 200

4) product k,j,m and l total sales 1000000

contribution 430000
profit 190000
1,000 190

135000
8 10
7500

current 16000
after 400000 35
11428.5714285714
4571.4

target profit 60000

fixed costs 12000
12500 22000
contribution 4.4
82000
18636.3636363636

fixed costs 2800

v.c 1800
contribution 3200 0.16
17500

contribution 48
12
 1500

breakeven units 120000 10

12000
mos 18000 0.6 60
c/s ratio 40.00%
390000
975000
100000
current after
sp increase 8% 20 21.6
v.c increase 5.20% 8 8.416
contribution 12 13.184
breakeven units 6592 6000
592.000000000001
9

total fixed cost 1400000

weighted avg c/s ratio 1500000 600000 2100000
6000000 3000000 9000000
5894737 6000000 0.233333333333333
105263

breakeven units 136400 75

1818.7
236400
3152

budgeted sales 9600000

breakeven sales 4000000
0.583333333333333 58.3333333333333
 price
14.8

price
1.2

price
14.8

cost per activity

737.50
2.07
510.64
388

s of annum of that product

cost per activity
180
280
6

6000000 100000
1200000 20000

0.166666666666667
cost per activity
18
3340
3250

inspections per unit 0.00018

0.0001666666667
setups per unit 4E-06
0.0001

cost per activity

100
0.5
250
132
3.6
 50000
20000
2.5

D
2.8
1
1.8
0.3
0.1
150
1500
250
2700 5760

2 15.5
cost per activity
906.25
1750
7.57575757575758
 23000

for 2

14000

45100
3.22
 2023
3000 36100

5000
870000
225000
125000
1225000 16528000
457.8
breakeven units/bud sales 0.21015
0.21015
1380.6855
5189.3

m
20000
200000
140000
60000 430000
0.3
2
% fall in the breakeven units

contribution
sales