Manufacturer of Electronic Components Assignment | Top Universities

Question 10:POLd is a small specialist manufacturer of electronic components and much output is used by the makers of aircraft for both civil and military purposes. One of the few current manufacturers has offered a contract of 400 identical components to PQ Lid. for supply over Twelve months. The data relating to the production of each component is as follows Material requirements 3 Llograms Material MI – See note I below 2 kilograms Material P2 – See note 2 below I part no. 678 – See note 3 below Notes: 1. Material Mi is in continuous use by the company. 1,000 kilograms are currently held in stock at a book value of 4.70 per kilogram but it is known that future purchases will con 5.50 per kilogram 2. 1.200 kilograms of Material P2 are held in stock. The original cost of this material was 14.30 per kilogram but as the material has not been required for the last two years it has been written down to 1.50 per kilogram scrip value.

The only foreseeable alternative uses sasa substitute for Material PA (in current use) but this would involve further processing cost of 1.60 per kilogram. The current cost of material P4 ist 3.60 per kilogram. 1. It is estimated that part no. 678 could be bought for 50 each Labour Requirements: Each component would require five hours of the dildo of sem skilled labor. An employee possessing the necessary skills So-called labor and five hours paid t5 per hour. A replacement would, however, to be obtained ulls is available and is currently work which would otherwise be done by the skilled employee. The work is 3 per hour and an additional please could be appoint Overhead: RG Lid. absorbs overhead by a machine hour rate.com is for variable overhead and 13 for fixed overhead. If this contra that fixed costs will increase for the duration of the contract by available and each component would require four machine hour price of 145 per components has been suggested by the large You are required to state whether or not the contract should be concluded with appropriate figures for presentation to manar Answer: 141.500 viable and five-hour placement would, however, to obtained at a rate of 4 per hour for the otherwise be done by the place could be appointed for this work completely. The current rate for sem skilled by a machine hour rale, currently 20 per hour of which for fixed overhead. this contract is undertaken, it on of the contracted byt 3.200 Spare machine capacity is estimated me stalled on and A price of 15 per compone date whether of D n uld require four contracts by alls und per hour te contract should e pay which makes aircraft accepted and support your (ICWA FINAL 2006). Get Accounting homework help today