Practical task 4A. The company produces and sells two products x and Y...

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Practical task 4A.
The company produces and sells two products x and Y at a sale price of 100 and 300 respectively.
Production and processes
(a) During production, each product undergoes two processes, 'A' and 'B'.
b) During process "A", product x needs to be treated for 2 hours and product Y for 4 hours.
(c) In process 'B', product x takes 1 hour to process and product Y takes 3 hours.
d) Work performed in process "A" is paid at the rate of 4 per hour, process B-5 per hour.
Both products are made of materials C,D and E; the quantity of each of these materials required for the manufacture of a unit of the product is:
A royalty of EUR 1 per unit is paid for the production of product x(according to the license).
Annual sales volume: product x-15,000 units; product Y-10,000 units
Sellers receive a commission of 5% of revenue.
Packaging material costs 1 for product x and 4 for product Y.
The cost of transporting the product to the consumer is 2 for product x and 5 for product Y.
Advertising expenses are 90,000(2% of revenue)
00:15
LTE 9
Task 4 A.doc
Other (overhead) annual costs are:
C
Indirect wages
Process A.
25000
Process B.
40000
Warehouse (Storage)
20000
Canteen
10?
000?
95000 Indirect materials
Process A.
51510
Process B.
58505
Warehouse (Storage)
1310
425?
Canteen 8
119750
Building rent 450000
Equipment depreciation.
..140,000 Lighting costs 50,000
Insurance costs:
Buildings
3,750
Employees (rate is 2% of salary)......12,000 Heating costs
4,500
660250
Total
amount.
875000
Table 1.
\table[[\table[[Responsibility],[Centres]],\table[[Area],[occupied,],[sq.],[metres]],\table[[Book value],[of],[machinery,],[
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