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Dd11 Case Study

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PART (A) Information Manufactured of DD11 Buying DD11 the difference D.M 100% (45000) 0 45000 D.L % (60000) 0 60000 V.F.O.H 80% (30000) (6000) 24000 F.F.O.H -2000 [55000-2000] (55000) (53000) 2000 Cost of buying DD11 [5000*14] (70000) (70000) Total cost (190000) (129000) 61000 net gain Recommend Adifferential cost / benefit analysis is made based on the cost of buying [dd11] of 70000$ and the savingin in direct materials [dd11] 45000 plus direct labor 60000 plus vriable factory over head 24000$ plus fixed factory over head 2000$ by stoped in produced [dd11] buying [ dd11] woud cut scapand re work costs .. DD55 [ space ] 3000 unit C M per unit 7$ Information Buying DD11 Buying of DD55 the difference Cost (129000) (129000)

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