The construction Company lands a project for painting offices with the following information available with regar to cost of paint: Paint 1 (Prepping) Paint 2 (Finishing) Direct Material Cost per unit R78.00 R92.00 Direct labor Cost per unit R48.00 R68.00 Direct overhead cost per unit R17.00 R16.00 Fixed cost per unit R135.00 R187.00 Sales price per unit R325.00 R520.00 The new supplier offers paint 1 at R187 and Paint 2 at R155 2.1 Calculate the lifecycle cost of the painting Job 22 Should the company buy 1 or both paints from current supplier or new supplier?
The construction Company lands a project for painting offices with the following information available with regar to cost of paint: Paint 1 (Prepping) Paint 2 (Finishing) Direct Material Cost per unit R78.00 R92.00 Direct labor Cost per unit R48.00 R68.00 Direct overhead cost per unit R17.00 R16.00 Fixed cost per unit R135.00 R187.00 Sales price per unit R325.00 R520.00 The new supplier offers paint 1 at R187 and Paint 2 at R155 2.1 Calculate the lifecycle cost of the painting Job 22 Should the company buy 1 or both paints from current supplier or new supplier?
Chapter5: Process Costing
Section: Chapter Questions
Problem 8EB: A production department within a company received materials of $7,000 and conversion costs of $5,000...
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