| |
UnframedPrint |
Steel Frame,nomat |
Wood Framewithmat |
| Volume expected units sold |
80,000 |
15,000 |
7,000 |
| Cost per print |
x $12 |
x $16 |
x $20 |
| Total Print Cost |
$960,000 |
$240,000 |
$140,000 |
| Frame Glass |
0 |
$60,000 |
$42,000 |
| Matting |
0 |
0 |
$28,000 |
| Direct Labor |
|
|
|
| Picking Time (10 minutes x $12 x 80,000/60) |
$160,000 |
|
|
| Picking Time (10 minutes x $12 x 15,000/60) |
|
$30,000 |
|
| Picking Time (10 minutes x $12 x 7,000/60) |
|
|
$14,000 |
| Matting and framing (20 minutes x $21 x15,000/60) |
0 |
$105,000 |
|
| Matting and framing (30 minutes x $21 x 7,000/60) |
|
|
$73,500 |
| Manufacturing Overheads (See Note1) |
|
|
|
| $960,000 x 28% |
$268,800 |
|
|
| $240,000 x 28% |
|
$67,200 |
|
| $140,000 x 28% |
|
|
$39,200 |
| Total Cost |
$1,388,800 |
$502,200 |
$336,700 |
| Unit Product Cost |
|
|
|
| $1,388,800 / 80,000 |
$17.36 |
|
|
| $502,200 / 15,000 |
|
$33.48 |
|
| $336,700 / 7,000 |
|
|
$48.10 |
Compute the product cost?
a) unframed print base cost of print $12
b) steel frame with no mat base cost print $16
c) wood frame with mat base cost print $20