Results for the year ended August 31, 2020 Revenue Discount Net Revenue Materials purchased Accounting and...

  

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Results for the year ended August 31, 2020 Revenue Discount Net Revenue Materials purchased Accounting and legal Utility Costs- Head Office Utility Costs- Production Administrative salaries Inspection Costs Factory Insurance Sales commissions Interest on business credit line Management salaries Property Taxes- Head Office Factory Building Amortization Office supplies, Courier and Postage Annual Business Licenses and Fees Warranty Program Costs Amortization Expense- Fabrication Equipment Amortization Expense- Office Equipment Business Liability Insurance Telephone Costs-Factory Telephone Costs- Head Office Anna's House Rent Labour- Assembly workers Labour- Production supervisors Total Expenses Net Income (Loss) Current Year End Balances Raw Materials Costs- Machines unfinished at year end Costs-Machines complete but not sold Last Year End Balances Raw Materials Costs- Machines unfinished at year end Costs- Machines complete but not sold Cosmetic Food $12,000,000 $22,000,000 (1,200,000) (2,200,000) (3,400,000) $10,800,000 $19,800,000 $30,600,000 (Omar,Anna, Ted $120,000 each) 7,899,802 15,377,198 23,277,000 5,000 30,000 2,000,000 Total 34,000,000 3,500,000 Cosmetic Food $1,500,000 $3,000,000 1,000,000 3,000,000 3,000,000 6,000,000 240,000 76,000 760,000 80,000 340,000 100,000 360,000 6,500 412,000 7,760 2,500 500,000 650,000 12,000 10,000 3,000 6,000 $15,000 5,500,000 600,000 32,992,760 ($2,392,760) Total $4,500,000 4,000,000 9,000,000 3,000,000 1,000,000 2,000,000 2,500,000 $500,000 $1,500,000 $2,000,000 5,000,000 7,500,000 Actual Results for Fiscal 2020 Net Revenue in $ Direct Labour Cost in $ # of Assembly Labour Hours # of Fabrication Machine Hours # of Machines sold # of Machines Produced Inspection Hours Factory Area used (sq metres) Direct Materials Direct Labour Cosmetic Food $10,800,000 $19,800,000 $2,000,000 $3,500,000 Question: 75,000 200,000 ii. Machine hours is the cost driver 40 70 420 i. Direct Labour Dollars is the cost driver. 175,000 375,000 100 11,250 22,800 Details of Proposed Customer Order 120 2,160 Total $30,600,000 $5,500,000 250,000 Note: Assume a Gross Margin of 15% in order to determine the proposed selling price. 575,000 140 190 2,580 Expected # of Fabrication Machine Hours 5,642 Calculate the predicted total cost and proposed selling price for the customer order using the following separate assumptions: 34,050 $226,000 $57,000 Results for the year ended August 31, 2020 Revenue Discount Net Revenue Materials purchased Accounting and legal Utility Costs- Head Office Utility Costs- Production Administrative salaries Inspection Costs Factory Insurance Sales commissions Interest on business credit line Management salaries Property Taxes- Head Office Factory Building Amortization Office supplies, Courier and Postage Annual Business Licenses and Fees Warranty Program Costs Amortization Expense- Fabrication Equipment Amortization Expense- Office Equipment Business Liability Insurance Telephone Costs-Factory Telephone Costs- Head Office Anna's House Rent Labour- Assembly workers Labour- Production supervisors Total Expenses Net Income (Loss) Current Year End Balances Raw Materials Costs- Machines unfinished at year end Costs-Machines complete but not sold Last Year End Balances Raw Materials Costs- Machines unfinished at year end Costs- Machines complete but not sold Cosmetic Food $12,000,000 $22,000,000 (1,200,000) (2,200,000) (3,400,000) $10,800,000 $19,800,000 $30,600,000 (Omar,Anna, Ted $120,000 each) 7,899,802 15,377,198 23,277,000 5,000 30,000 2,000,000 Total 34,000,000 3,500,000 Cosmetic Food $1,500,000 $3,000,000 1,000,000 3,000,000 3,000,000 6,000,000 240,000 76,000 760,000 80,000 340,000 100,000 360,000 6,500 412,000 7,760 2,500 500,000 650,000 12,000 10,000 3,000 6,000 $15,000 5,500,000 600,000 32,992,760 ($2,392,760) Total $4,500,000 4,000,000 9,000,000 3,000,000 1,000,000 2,000,000 2,500,000 $500,000 $1,500,000 $2,000,000 5,000,000 7,500,000 Actual Results for Fiscal 2020 Net Revenue in $ Direct Labour Cost in $ # of Assembly Labour Hours # of Fabrication Machine Hours # of Machines sold # of Machines Produced Inspection Hours Factory Area used (sq metres) Direct Materials Direct Labour Cosmetic Food $10,800,000 $19,800,000 $2,000,000 $3,500,000 Question: 75,000 200,000 ii. Machine hours is the cost driver 40 70 420 i. Direct Labour Dollars is the cost driver. 175,000 375,000 100 11,250 22,800 Details of Proposed Customer Order 120 2,160 Total $30,600,000 $5,500,000 250,000 Note: Assume a Gross Margin of 15% in order to determine the proposed selling price. 575,000 140 190 2,580 Expected # of Fabrication Machine Hours 5,642 Calculate the predicted total cost and proposed selling price for the customer order using the following separate assumptions: 34,050 $226,000 $57,000

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