Greenlife is a health resort that offers a range of programs for health-conscious managers. Managers who participate are provided with
Program A:......... Health check, 2-hour bushwalk, 30-minute yoga class, 15-minute massage
Program B:......... Health check, 1-hour gym workout, 30-minute massage
Program C:......... Health check, 2-hour bushwalk, 60-minute yoga class, 2-hour gym workout
Program D:.........1-hour gym workout, 30-minute yoga class, 2-hour bushwalk
The following labour costs and overheads apply:
1. Determine the total cost of each of the programs.
2. How might the resort managers use these total costs?
3. Explain why there is a different overhead rate for each class of labour.
4. Calculate the price of each program using the chargeout rates.
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