ACCY 211 – Week 3 Tut Hw

2.9 Manufacturing sector companies create and sell their own products, retail sector companies are
product resellers and service sector companies provide services (intangible products).

2.16

1. Manufacturing costs:

Supreme Deluxe Regular Total

Direct Material 89 57 60 206
Cost
Direct manuf 16 26 8 50
labour cost
Manufacturing 48 78 24 150
overhead costs
Total manuf cost 153 161 92 406
Fixed costs 4.80 7.80 2.40 15
allocated ($15M/
$50M) (0.30*16;
26; 8)
Variable Cost 148.20 153.20 89.60 391
Units produced 125 150 140
Manufac cost per 1.224 1.0733 0.6571
unit (Manuf
cost/Units
produced)
Variable manuf 1.1856 1.0213 0.6400
cost (variable
cost/units
produced)
2.37