DEAD CENTRE :

DIRECT MATERIAL COST:

Cost of Alloy Steel per KG

= Rs.80

Scrap rate per KG

= Rs.18

Volume of raw material (diameter=25mm ; length =105mm)

= 5.1541*10-5 m 3

Density of Alloy steel (PSG Design data book)

= 7850 kg/m3

Mass of raw material for one component

= Density*volume
=7850*5.1541*10-5
=0.4046 kg

Total mass of raw material

=Density*volume*25
= 10.11 kg

Volume of finished component

= 2.58745*10-5 m 3

Mass of finished component

= Density*volume
=7850*2.58745*10-5
=0.2031 kg

Total mass of finished component

=Density*volume*25
=5.0778kg

Scrap

= 10.11-5.0778
=5.03 kg

Direct material cost

= (10.11*80)-(5.03*18)
= Rs.718.26

LABOUR COST:
Labour rate

= Rs.60/hour

Labour cost for one component

= (60/60)*(8min+1min)
=Rs.9

Labour cost for 25 components

= 9*25
=Rs.225

OVERHEADS:
Machine hour rate for Lathe

= Rs.613/hr

Operation time for one component

= 8min

Cost for one component

= (8/60)*613
= Rs.81.73

Machine hour rate for Cylindrical grinding machine

= Rs.771/hr

Operation time for one component

= 1min

Cost for one component

= (1/60)*771
= Rs.12.85

TOTAL COST FOR 25 COMPONENTS

= (81.73+12.85)*25
=Rs.2364.5

Total Cost of Production

=Prime cost + Overheads

=718.26+2364.5+225
=Rs.3307.76

Total Cost of Production for one component

= 3307.76/25
=Rs.132.3104

Selling Price with 15% profit

132.3104(1+(15/100))
=Rs.152.1569

FEATHER KEY :
DIRECT MATERIAL COST:
Cost of Mild Steel per KG

= Rs.70

Scrap rate per KG

= Rs.14

Volume of raw material

= 2.4630*10-6 m 3

Density of Mild steel (PSG Design data book)

= 7480 kg/m3

Mass of raw material for one component

= Density*volume
=7480*2.4630*10-6
=0.018 kg

Total mass of raw material

=Density*volume*25
= 0.45 kg

Volume of finished component

= 4.5091*10-7 m 3

Mass of finished component

= Density*volume
=7480*4.5091*10-7
=3.327*10-3

kg
Total mass of finished component

= Density*volume*25
=0.08 kg

Scrap

= 0.45-0.08
=0.37 kg

Direct material cost

= (0.45*70)-(0.37*14)
= Rs.26.32

LABOUR COST:
Labour rate

= Rs.60/hour

Labour cost for one component

= (60/60)*(4)
=Rs.4

Labour cost for 25 components

= 4*25
=Rs.100

OVERHEADS:
Machine hour rate for Lathe

= Rs.613/hr

Operation time for one component

= 2min

Cost for one component

= (2/60)*613
= Rs.20.43

Machine hour rate for Cylindrical grinding machine

= Rs.781/hr

Operation time for one component

= 2min

Cost for one component

= (2/60)*781
= Rs.26.03

TOTAL COST FOR 25 COMPONENTS

= (20.43+26.03)*25
=Rs.1161.5

Total Cost of Production

=Prime

Total Cost of Production for one component

= 1287.82/25

cost+Overheads
=26.32+100+1161.5
=Rs.1287.82

=Rs.51.51
Selling Price with 15% profit

= 51.51(1+(15/100))
=Rs.59.23