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Sonja Cc is a small firm that make outfits for customers tailored for their functions, in May 2021 she was order for a baby shower (BS).
The details Job for BS are as follows:
Direct materials: 120 units at N124
Direct labour: 20 hours for department A at N$25 per hour.
10 hours for department B at N30 per hour
12 hour s for department C at N$27.50
The firm allocates manufacturing overheads budgeted at N$2500 in department A, N$2000 in department B and N$3000 in department C.
The firm expects a profit of 55% on the total cost of BS.
Required:
a)Calculate the cost of a baby shower (BS)
b)Calculate the selling price of a baby shower (BS)
c)If the number of outfits are the same for each type of function, which function should Sonja choose to produce and why?
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#339914 on Dec 2023