The industrial plastics company manufactures three different models, called L-6, L-8 and L-12. For the year, the
Question:
The industrial plastics company manufactures three different models, called L-6, L-8 and L-12. For the year, the budgeted data regarding the next prime cost of the three models is as follows:
Model | Costo of material direct | Direct Labor Cost | Total por Model |
L6 | 40,000 | 60,000 | 100,000 |
L8 | 46,000 | 42,000 | 88,000 |
L12 | 50,000 | 45,000 | 95,000 |
TOTAL | 136,000 | 147,000 | 283,000 |
Regarding common manufacturing costs, the budget indicated the following amounts:
Direct Labor $17,000 Overtime Bonus $11,200 Factory Supplies $11,500 Factory Taxes $1,800 Fire Insurance $2,300 Heating and Lighting $2,000 | |
Factory Building Depreciation $13,200 Machinery Depreciation $12,700 Factory Office Costs $3,200 Gas for Machinery $24,100 Total $99,000.00
Using the above information do the following: • Prepare a chart or table illustrating the distribution of common manufacturing costs based on the cost of raw materials and showing, for each of the models, the cost structure, gross profit, and selling price, assuming that the gross profit over the cost of production for each model is: L-6 20%, L-8 30% and L-12 25%.
• Prepare a second chart or table illustrating the distribution of common manufacturing costs based on direct labor cost and showing, for each of the models, the cost structure, gross profit, and selling price. , assuming that the gross profit over the cost of production for each model is: L-6 20%, L-8 30% and L-12 25%.
• Create a third chart or table illustrating the distribution of common manufacturing costs on a prime cost basis and showing, for each of the models, the cost structure, gross profit, and selling price, assuming profit gross over production cost for each model is: L-6 20%, L-8 30% and L-12 25%. |