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CASE STUDY: Sues Sneakers

Sues Sneakers specialises in making eco friendly sneakers. Their top seller are a custom made city slickers sneakers. They have been doing business for over 6 years and have loyal customers. Their manufacturing facility are based in Barcelona. They have 10 employees working for them. The security guard has worked there since the establishment of the company. They recently bought a new sewing machine from the Uk. They use only the finest quality of materials and rubber to make the shoes. When a shoe maker are employed, Sues sneakers sends them on a special course in London, because they want to ensure that their shoe makers have exceptional skills and all meet a certain standard of excellence. The Human Capital manager checks in with the team on a weekly basis during a weekly meeting to establish if there are any problems or concerns for the factory employees and then he reports back to the managing director with his weekly report. Sue also has a great team of marketing experts that run their social media advertising and ensure that they stay on top of the competitive game with the latest design trends. The receptionist works from 9 to 6 during office hours and customers can place orders with her directly. Sue also has employed an additional security guard for the night shifts. The financial director is extremely happy with the past financial quarters performance, despite the volatility in the market. Property tax has also increased, but their profits still managed to cover the high tax. Sue also uses high quality vegan Leather, that comes in a variety of colours. They use non toxic glue, breathable mesh and high quality foam as some of the materials in the sneakers.

1: Define total manufacturing costs.

2: What is direct manufacturing costs.

3: What are indirect manufacturing costs.

3: Determine 5 direct materials used in Sues sneakers .

4: Identify three types of labour (Also state if its direct or indirect).

5: Identify three types of overhead costs.

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