incremental revenue 90000

ad 25000 Ic
material 25000
dl 20000
mo 30000

100000
-10000

expected manufacturing
PGNO. 73 overhead 1000000
Direct Labour Hours 40000 Per Labour hour
Direct Labour cost 625000 Per Labour cost

Machine Hours 20000 Per Machine hour

Material Cost 800000 Per Material hour

Job 253 Per Labour hour

Direct material 3000
Direct labour 1800
Overhead 3750

cost of job 8550

PGNO. 77(2-6) over head 200000

Direct Labour Hours 25000 Per Labour hour
Direct Labour cost 300000 Per Labour cost

Machine Hours 8000 Per Machine hour

JOB 25 Per Labour hour Per Labour cost

Direct material 1000 1000
direct labour 1400 1400
manufacturing overhead 1200 933.333333333333
 cost of the job 3600 3333.33333333333

section 2
Setting up production line 10000 per setup

ordering material 165 per purchase order

handeling material 350 per requision

running machine 1500 per machine hour

inspection 450 per inspection
design 85 per design hour
other 3000 per workstation

ND32
set up 200000

ordering material 41250

handling material 63000

running machine 750000

inspection 202500
design 5100
other 60000

direct material 2025000

direct labor 9450000
manufacturing overhead 1321850

Total Cost 12796850

sales 21375000

gross profit 8578150

Gross profit margin 40%

section 3
PGNO.248(6-13) (A)
 cost pool
return check cost 3000000 200000
checking account 60000 3000
new setup 780000 60000
copies of cancelled check 300000 80000
website 225000 10

Traditional
© based costing

total no. of
checking account 221750
no. of money
market acc 60000
total checking
account cost 4365000

1181060

PG 250(5-15) (A)

cost pool
material ordering 840000 120000
materials inspection 525000 2100
equipment setup 2500000 125
quality control 1000000 5000
other 25000000 12500000

Traditional
based costing

total
manufactring
overhead 29865000

total labour cost 12500000

O/H Rate 2.3892

 (C) annual production
847150 40000
(D)
Total unit cost
DM 37
DL 8
MO 21.17
Total cost 66.17

PGNO.248(6-12) (A)

cost pool
material ordering 72000 8000
materials inspection 75000 375
equipment setup 105000 3000
quality control 69000 3000
other 100000 2000000

Traditional
based costing

total
manufactring
overhead 421000

total labour cost 2000000

O/H Rate 0.2105

(C)
19350 19500
0.9923076923077

(D)
Total unit cost
DM 10
DL 2
MO 0.9923
Total cost 12.9923
IR 90000
ad 25000
material 25000
DL 20000
MO 3000

IC 73000
IP 17000

25
1.6

50

1.25

Per Material
Per Labour cost Per Machine hour hour
3000 3000 3000
1800 1800 1800
2880 7500 3750

7680 12300 8550

8
0.66666666667

25

Per Machine
hour
1000
1400
3250
 5650

n2
ND32 MX240
20 2

250 30
180 5

500 8
450 50
60 325
20 30

MX240
20000

4950

1750

12000
22500
27625
90000

2600
16500
178825

197925
112500

-85425
-76%

n3
 cost for
Money market money
cost driver checking market
15 18000 270000
20 420 8400
13 20000 260000
3.75 50000 187500
22500 1 22500
748400

(B)
cost for
money
cost driver art of design market
7 1200 8400
250 315 78750
20000 1 20000
200 500 100000
2 320000 640000
847150

(E)
DM 37
DL 8
MO 19.1136
64.1136
 21.17875

(B)
cost for
Strawberry money
cost driver cheesecake market
9 100 900
200 60 12000
35 30 1050
23 150 3450
0.05 39000 1950
19350

(E)
DM 10
DL 2
MO 0.421

12.421
 A B
Increasing sp 10% Decreasing Sp 10%
SPPU 200 220 180
VCPU 90.83 90.83 90.83
Fixed Cost 160285 160285 160285

cpu 109.17 129.17 89.17

PV Ratio 0.54585 0.58713636364 0.49538888889
BEP in Units 1468.215 1240.88410622 1797.52158798
BEP in Rupees 293642.9 272994.503368 323553.885836
In Rupees 293642.9
Increasing VC 10% Decreasing VC 10% Increasing FC 10% Decreasing FC 10%
200 200 200 200
99.913 81.747 90.83 90.83
160285 160285 176313.5 144256.5

100.087 118.253 109.17 109.17

0.500435 0.591265 0.54585 0.54585
1601.45673264 1355.441299586 1615.0361821 1321.3932399
320291.346529 271088.2599173 323007.23642 264278.64798
 Model A Model B
SP 2000 3000 Existing sal 6450000
VC 800 1200 20%
Contributi 1200 1800 Increase in 1290000

2 1 PV ratio 0.270

waited
average
contributi
on 1400 Increasing 348816

FC 3500000 PV Ratio
BEP 2500 Garden too 258000 0.1874 48349.2
1666.667 833.3333 outdoor fu 387000 0.1748 67647.6
barbecues 516000 0.2421 124923.6
entertainm 129000 0.4938 63700.2
1290000 304620.6

Operating Liverage

10% 10%
Firm 1 inc dec Firm 2
PGNO 145 sales 10000000 11000000 9900000 10000000
VC 5000000 5500000 4950000 7000000
Con 5000000 5500000 4950000 3000000

FC 3000000 3000000 3000000 1000000

Profit 2000000 2500000 1950000 2000000
 10% 10%
inc dec
11000000 9900000
7700000 6930000
3300000 2970000

1000000 1000000
2300000 1970000