Sales Material Costs Material Costs (% of sale Direct Labor Over Overhe hea ad @30 300 0% Total Total Operat Operating ing Income Income Return on Sales
Production Sales Volume Unit Seling Price
Materials-Unit Cost Direct Labor Hours per U Machine Hours per Unit Setup Time per Run Production Run Avg Units per run Total Setup Time Parts Administration Cos Cost of Tota Totall Setup etup
Blue 75,000 25,000 33.3% 10,000 30,0 30 ,00 00 10,000 10,000 13.3%
Black 60,000 20,000 33.3% 8, 8,000 24,0 24 ,00 00 8,000 8,000 13.3%
Red 13,950 4,680 33.5% 1, 1,800 5,40 5,400 0 2,070 2,070 14.8%
Purple 1,650 550 33.3% 200 600 60 0 300 18.2%
Total 150,600 50,230
Blue 50000 1.50 0.50 0.02 0.1 4 50 1000 200 1 13,6 13 ,68 88
Black 40000 1.50 0.50 0.02 0.1 1 50 800 50 1 3,42 ,422
Red 9000 1.55 0.52 0.02 0.1 6 38 237 228 1 15,6 15 ,60 05
Purple 1000 1.65 0.55 0.02 0.1 4 12 83 48 1 3,28 3,285 5
Total 100000
20,000 60,0 60 ,00 00 20,370 20,370
2000 10000 150 526 4
Expense Category Indirect Labor Fringe Benefits Computer Systems Machinery Maintenance Energy Total Indirect labor (changeover) Fringe benefits (changeover) Computer cost (80% cost ) Total Changeover cost Hours spent on changeover Cost per hour of changeover Cost per Blue Changeover (4 hours) Cost per Black Changeover (1 hours) Cost per Red Changeover (6 hours) Cost per Purple Changeover (4 hours)
Expenses 20,000 16,000 10,000 8,000 4,000 2,000 60,000 20,000 8,000 8,000 36,000 526 68 274 68 411 274
