Wollongong wishes to calculate an operating budget for the forthcoming period. Information regarding products, costs and sales
Question:
Wollongong wishes to calculate an operating budget for the forthcoming period. Information regarding products, costs and sales levels is as follows: Product A B Materials required X (kg) 2 Y (litres) Labour hours required Skilled (hrs) Semi-skilled (hrs) 2 Sales level (units) 2,000 1,500 Opening stocks (units) 100 200 Closing stock of materials and finished goods will be sufficient to meet 10% of demand. The opening stock of material X was 300 kg and for material Y was 1,000 litres. Material prices are f10 per kg for material X and 7 per litre for material Y. Labour costs are {12 per hour for the skilled workers and f8 per hour for the semi-skilled workers. Required:
a) Produce the following budgets: (28 marks)
i. Production (units)
ii. Materials usage (kg and litres)
iii. Materials purchases (kg, litres and f)
iv. Labour (hours and f)
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0134141084
11th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs