1

Adm Purch Prod

Indirect costs 40000 42000 260000

Total ind cost 0 50000 272000

Driver number of purchase odirect labour hours
nb of drivers 100 6800
cost per driver 500 40
Allocated to M1 30000
Allocated to M2 20000

2 Purchasing cost
M2
Purchase 100000
Indirect purchase
20000
cost
Cost of goods 120000
purchased

Inventory
beginning inventory
plus Entry (which is cost of goods purchased)
goods available
average cost
exit
ending inventory
Distributon answer
50000

70000
€ of sales revenue
1400000
0.05