The company Senso produces sensors for the auto industry, they have two products, Alpha and Beta....
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The company Senso produces sensors for the auto industry, they have two products, Alpha and Beta. The following budget has been made for the year 2011: Description Alpha Beta Sum Sales 100 mill. 70 mill. Direct material cost 30 mill. 10 mill. Direct labour cost 30 mill. 10 mill. Indirect production cost Indirect admin/sales 170 mill. 40 mill. 40 mill. 20 mill. 50 mill. Total costs Profit The indirect production cost is to be allocated on the basis of total direct materials (for both products), and the indirect admin/sales cost is to be allocated on the sum of total production cost. 50% of the indirect production cost is variable, and 40% of the indirect admin/sales cost is variable. 150 mill. 20 mill. Calculate the indirect allocation rate to be used for the indirect production cost, when used in an absorbtion based cost calculation. (Provide your answer as desimal points, ie if you answer is 65%, you provide the answer as 0.65, with a punctuation mark, and not comma) The company Senso produces sensors for the auto industry, they have two products, Alpha and Beta. The following budget has been made for the year 2011: Description Alpha Beta Sum Sales 100 mill. 70 mill. Direct material cost 30 mill. 10 mill. Direct labour cost 30 mill. 10 mill. Indirect production cost Indirect admin/sales 170 mill. 40 mill. 40 mill. 20 mill. 50 mill. Total costs Profit The indirect production cost is to be allocated on the basis of total direct materials (for both products), and the indirect admin/sales cost is to be allocated on the sum of total production cost. 50% of the indirect production cost is variable, and 40% of the indirect admin/sales cost is variable. 150 mill. 20 mill. Calculate the indirect allocation rate to be used for the indirect production cost, when used in an absorbtion based cost calculation. (Provide your answer as desimal points, ie if you answer is 65%, you provide the answer as 0.65, with a punctuation mark, and not comma)
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