Question

TABLE 3.1 Materials for a Batch COST/BATCH BATCH Mix 100 lbs. sand 38 lbs. soda 9 lbs. potassium 3 lbs. borax 14 lbs. lime 2 lbs. flourispar 3 lbs. zinc oxide COST/UNIT $35/ton $110/700 lbs $105/200 lbs. $.50/lb. $5.50/50 lbs. $.47/lb. $1.40/Ib. $1.75 5.97 4.72 1.50 1.54 94 4.20 169 lbs. $20.62 Additional Ingredients 20 grams antimony 40 grams arsenic $.23 $5.20/lb. $6.50/lb. .57 Total $.80 $21.42 Cullet: 31 lbs.

Answer 1

1. Determination of direct Material cost per product : solitem Patte med glasses Paperweights Wrapped trambler 8 Vases 25 15 Cost pu weight /plece lb 5 e6 .9 lb lece 5 lb 4 .6 15 13.5 DM Cost Perpiece 4.5 2. Determination of direct Labour cost per product: sol item Patterned glasses Paperweight wrapped tumbleu Vives Production time 10.42 6.25 6.25 Hot time 6.25 [25x15 (25 x 15 cold time 125 6.25 12.5 7.5 7.5 12 .5 Direct labous Cost perproduct 1

variable & Fixed cost: Variable Cost Fixed 3. Calculation sol items office Supplies Cost 25 150 Hand tool &ms. part time labor Professional services Ad & promotion Contribution Dues and subscription Travel & entertainment Insurance Tooces & licenses Repaiss & maintance Rent Ufilities & telephone 480 Miscellaneous :: total cost 435 . Variable Cost per product=435 = 1.58 276 fixed cost per product= 480 = 1.74 276

0 Product profitability item Patterned glasses schodule Paperweights wrapped trembles cases 15 13.5 o 7.5 12.5 12.5 D.M Cost D.L Cost vas Cost 7.5. 1.58 1.58 1.58 1:58 1.79 1.74 174 Fixed cost 1. total cost 30-82 14.82 15.32 29.32 tumbles is the most ". Wrapped profitable item