MANUFACTURING COST (CUPS)

1. DIRECT MATERIAL COST

Unit Price
S.N Item Description Unit Qty Amount (ETB)
(ETB)
1 PP kg 5,000 140 700,000.00
2 WMB >> 50 591 29,550.00
Total Direct Material Cost 729,550.00
2. DIRECT LABOUR COST
Wage per Amount
S.N Labor Unit Qty Working date
day (ETB)
1 Senior Operators head 3 373.70 30 33,633.00
2 Assistant Operators >> 3 111.92 30 10,072.80
Total Direct Labor Cost 43,705.80

3. PACKAGING MATERIAL COST

Unit Price
S.N Item Description Unit Qty Amount (ETB)
(ETB)
1 Box Pcs 552 137.40 75,844.80
2 Poly bag >> 552 25 13,800.00
3 Tape >> 20 350 7,000.00
Total Packaging Material Cost 96,644.80

4. OVERHEAD COST
S.N Item EXPENSE
1 Utilities 9,900.00
2 Transport 10,560.00
3 Salaries 83,792.79
4 office 2,200.00
5 Depreciation 0.00 368,368.00
6 Insurance 3,278.00
7 Interest 216,986.00
Total Fixed Cost 326,716.79
 MANUFACTURING COST (LIDS)

1. DIRECT MATERIAL COST

Unit Price
S.N Item Description Unit Qty Amount (ETB)
(ETB)
1 HIPS kg 5,000 240 1,200,000.00
2 WMB >> 250 591 147,750.00
Total Direct Material Cost 1,347,750.00
2. DIRECT LABOUR COST
Wage per
S.N Labor Unit Qty Working date
day
1 Senior Operators head 3 373.70 30
2 Assistant Operators >> 3 111.92 30
Total Direct Labor Cost
3. PACKAGING MATERIAL COST
Unit Price
S.N Item Description Unit Qty Amount (ETB)
(ETB)
1 Box Pcs 714 137.40 98,103.60
2 Poly bag >> 25,000 2.25 56,250.00
3 Tape >> 25 350 8,750.00
Total Packaging Material Cost 163,103.60

4. OVERHEAD COST
S.N Item EXPENSE
1 Utilities 9,900.00
2 Transport 10,560.00
3 Salaries 83,792.79
4 office 2,200.00
5 Depreciation 0.00 368,368.00
6 Insurance 3,278.00
7 Interest 216,986.00
Total Fixed Cost 326,716.79
 Amount
(ETB)
33,633.00
10,072.80
43,705.80
PRODUCT: R94500M
1. DIRECT MATERIAL COST PER ITEM
Total Direct Material Cost Per Month (1) ETB 729,550.00
Number of Items Produced per Month (2) 552,000
Direct Material Cost Per Item (3) = (1)/(2) ETB 1.3216
2. DIRECT LABOUR COST PER ITEM
Total Direct Labor Cost Per Month (4) ETB 43,705.80
Direct Labor Cost Per Item (5) = (4)/(2) ETB 0.0792
3. PACKAGING MATERIAL COST PER ITEM
Total Packaging Material Cost Per Month (6) ETB 96,644.80
Direct P. Material Cost Per Item (7) = (6)/(2) ETB 0.1751
4. OVERHEAD EXPENSE PER ITEM
Total Overhead Expense Per Month (8) ETB 326,716.79
Total Direct Cost Of The Entire Business (9) ETB 2,380,754.20
Over head Expense Per Direct Cost (10) = (8)/(9) ETB 0.1372
Total Direct Cost Per Item (11) =(3)+(5)+(7) ETB 1.5759
Overhead Expense Per Item (12) = (10)X(11) ETB 0.2163
5. TOTAL COST OF MANUFACTURING PER ITEM
Direct Material Cost Per Item ETB 1.3216
Direct Labour Cost Per Item ETB 0.0792
Packaging Material Cost Per Item ETB 0.1751
Overhead Expense Per Item ETB 0.2163
Total Manufacturing Cost Per Item ETB 1.7922
PRODUCT: DOME LID
1. DIRECT MATERIAL COST PER ITEM
Total Direct Material Cost Per Month (1) ETB 1,347,750.00
Number of Items Produced per Month (2) 1,300,000
Direct Material Cost Per Item (3) = (1)/(2) ETB 1.0367
2. DIRECT LABOUR COST PER ITEM
Total Direct Labor Cost Per Month (4) ETB 43,705.80
Direct Labor Cost Per Item (5) = (4)/(2) ETB 0.0336
3. PACKAGING MATERIAL COST PER ITEM
Total Packaging Material Cost Per Month (6) ETB 163,103.60
Direct P. Material Cost Per Item (7) = (6)/(2) ETB 0.1255
4. OVERHEAD EXPENSE PER ITEM
Total Overhead Expense Per Month (8) ETB 326,716.79
Total Direct Cost Of The Entire Business (9) ETB 2,380,754.20
Over head Expense Per Direct Cost (10) = (8)/(9) ETB 0.1372
Total Direct Cost Per Item (11) =(3)+(5)+(7) ETB 1.1958
Overhead Expense Per Item (12) = (10)X(11) ETB 0.1641
5. TOTAL COST OF MANUFACTURING PER ITEM
Direct Material Cost Per Item ETB 1.0367
Direct Labour Cost Per Item ETB 0.0336
Packaging Material Cost Per Item ETB 0.1255
Overhead Expense Per Item ETB 0.1641
Total Manufacturing Cost Per Item ETB 1.3599