Let us assume that Company W produces two different types of products, %. and Y. it is estimated that factory overhead costs will be $200,000. Managers consider that GAP% of the POH cost could be associated with direct labour hours and 40% with machine hours. The total direct labour and machine hours will be equad to 40,000 and 20,0KR respectively. The managers want to calculate the cost of Product % and Product y erately, Product X requires two direct labour hours and Product Y requires 1 direct labour hour. Moreover, these products need I machine hour and 3 machine hours in the machining processes respectively. Direct Labour hour rate is equal to $25 for all products. Finally, Product X requires $35 as a material cost and Product Y needs a material cost of $15, Please calculate cost of Product X (show all your calculationsy? (15p) 6. Compute the verhead cost to be assigned to each unit of Race Tire and Rally Tire according to s activity-based costing system (40p). Let us assume that Company W produces two different types of products, % and Y. It is estimated th factory overhead costs will be $200.000. Managers consider that 64% of the FOH cost could be associated with direct labour hours and 40% with machine hours. The total direct labour and machine hours will be equal separate and 20,000 respectively. The managers want to calculate the cost of Product % and Product tely Product X requires two direct labour hours and Product Y requires 1 direct labour hour, Moreover, Le products need I machine hour and 3 machine hours in the machining processes respectively. Direct Labour hour rate is equal to $25 for all products. Finally, Product X requires $35 as a material cost and Product Y needs a material cost of $15, Please calculate cost of Product X (show all your calculations? (15p) 04. BONUS QUESTION sales and standard costs for next year are as follows: Y ltd is a manufacturing company producing a single product. The detailed information about Budgeted Selling price per unit $40 Variable production cost per unit $14 Fixed cost for production dept. $ 250,000 Fixed cost for administration dept. $ 350,000 Sales commission Selling units 15% of selling price 300,000 units Required: (a) Calculate the break-even point in units. (b) Calculate margin of safety percentage for XYZ Itd.
