DOLittle Incorporated specialises in producing a set of wood patio furniture consisting of a table and...

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DOLittle Incorporated specialises in producing a set of wood patio furniture consisting of a table and four chairs. The set enjoys great popularity, and the company has enough orders to keep production going at its full capacity of 2 000 sets per year. Annual cost data at full capacity: R A Property taxes (factory building: 200m²; Office building: 50m) 18 000 Wages – Factory machine operators (paid a labour rate of R30; worked) B per hour 1 000 000 C Advertising 23 000 D Salaries – General manager (time allocation: 50% for supervision of production, 50% for financial management and marketing and sales activities) 200 000 E Materials – Wood 940 000 - F Materials – Glue (bought in 10-litre containers) 16 000 G Salaries – Production team leaders (one team leader is needed to supervise 10 200 000 labourers (11– 20 labourers require two team leaders, etc.) H. Salaries – Sales representatives 300 000 I Insurance on buildings (factory building: 200m?, Office building: 50m) 25 000 Depreciation – Offce equipment 20%; Factory machinery 80% 34 000 K Lease - General factory equipment 120 000 L. Salaries – Office personnel 450 000 +Cost classification Cost Item Cost behaviour Period Product Cost Cost Variable Fixed Step-fixed Direct Indirect A (хаmple) 18 000 3 600 14 400 В G H K L. DOLittle Incorporated specialises in producing a set of wood patio furniture consisting of a table and four chairs. The set enjoys great popularity, and the company has enough orders to keep production going at its full capacity of 2 000 sets per year. Annual cost data at full capacity: R A Property taxes (factory building: 200m²; Office building: 50m) 18 000 Wages – Factory machine operators (paid a labour rate of R30; worked) B per hour 1 000 000 C Advertising 23 000 D Salaries – General manager (time allocation: 50% for supervision of production, 50% for financial management and marketing and sales activities) 200 000 E Materials – Wood 940 000 - F Materials – Glue (bought in 10-litre containers) 16 000 G Salaries – Production team leaders (one team leader is needed to supervise 10 200 000 labourers (11– 20 labourers require two team leaders, etc.) H. Salaries – Sales representatives 300 000 I Insurance on buildings (factory building: 200m?, Office building: 50m) 25 000 Depreciation – Offce equipment 20%; Factory machinery 80% 34 000 K Lease - General factory equipment 120 000 L. Salaries – Office personnel 450 000 +Cost classification Cost Item Cost behaviour Period Product Cost Cost Variable Fixed Step-fixed Direct Indirect A (хаmple) 18 000 3 600 14 400 В G H K L.

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