A cable manufacturing company produces cables from some raw materials; wire and plastic resins. To produce one
Question:
A cable manufacturing company produces cables from some raw materials; wire and plastic resins. To produce one meter cable 150 gm resin and 0.4 kg re are required to produce one meter of cable. Cost of resin and wire is 1k.80/Kg and Tk.100/Kg respectively. The company can produce 40000 meter cable per month by using 200 labors. Average wage of each labor is Tk.600 per day, and overhead cost is 3 million taka per month. To set up the machine 60 million taka is invested on it. Life of the machine is 5 years. Price of the Tk.350/meter respectively. Consider 25 working days make a month.
a. Compute labor, material, machine, overhead and multi factor productivity (Daily, Monthly, Yearly in every possible way) and interpret the result
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan