Windhoek Manufacturers produces two products, Amber and Black. The following cost estimates have been prepared using the traditional absorption costing approach. Selling price per unit Production costs per unit: Material costs Direct labour costs Manufacturing overhead cost Profit per unit Additional information. Estimates sales demand Machine hours per unit Required 1.1 1.2 Amber N$ Amber 69 27 72 12 6 AN 24 9 000 0.75 Calculate the return per machine hour for each product if through put accounting approach is used. Calculate the profit for the period, using a throughput accounting approach, assuming the company priorities Black Black N$ 93 21 458 24 15 18 36 Black 12 000 1.20 TOLOGE
Windhoek Manufacturers produces two products, Amber and Black. The following cost estimates have been prepared using the traditional absorption costing approach. Selling price per unit Production costs per unit: Material costs Direct labour costs Manufacturing overhead cost Profit per unit Additional information. Estimates sales demand Machine hours per unit Required 1.1 1.2 Amber N$ Amber 69 27 72 12 6 AN 24 9 000 0.75 Calculate the return per machine hour for each product if through put accounting approach is used. Calculate the profit for the period, using a throughput accounting approach, assuming the company priorities Black Black N$ 93 21 458 24 15 18 36 Black 12 000 1.20 TOLOGE
Chapter1: Financial Statements And Business Decisions
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