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AF201 - Week 7 Tutorial UNIT 6: SERVICE COSTING Program A: Program B: Program :...

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AF201 - Week 7 Tutorial UNIT 6: SERVICE COSTING Program A: Program B: Program : Program D: Health check, 2-hour bushwalk, 30-minute yoga class, 15-minute massage Health check, 1-hour gym workout, 36-minute massage Health check, 2-hour bushwalk, 60-minute yoga class, 2-hour gym workout 1-hour gym workout, 30-minute yoga class, 2-hour bushwalk The following labour costs and overheads apply: Employee Bushwalking leader Massage therapist Personal trainer (for gym workout) Yoga class leader Medical doctor (for 30-minute health check) Labour cost $ 30 per hour $ 60 per hour $ 60 per hour $ 30 per hour $150 per hour Overhead applied $ 90 per hour $150 per hour $300 per hour $180 per hour $270 per hour Chargeout rates $144 per hour $252 per hour S432 per hour S252 per hour $504 per hour Required: 1. Determine the total cost of each of the programs. 2. How might the resort managers use these total costs? 3. Explain why there is a different overhead rate for each class of labour. 4. Calculate the price of each program using the chargeout rates

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