CAS3701 ASSIGNMENT 12 SUGGESTED SOLUTIONS

CAS3701 Assignment 12

Task 1. A

To calculate the cost per unit for each EnduroPro94 Smart Phone, we need to calculate the
total cost of materials, labor, and manufacturing overheads, then divide by the total number
of units produced.


*Materials:*

1. Cobalt: 0.5 kg/unit × R150/kg = R75/unit
2. Other Metals: 1.2 kg/unit × R100/kg = R120/unit
3. Other Materials: 1 unit/unit × R50/unit = R50/unit


Total Material Cost per unit = R75 + R120 + R50 = R245/unit


*Labour:*

3 hours/unit × R80/hour = R240/unit


*Manufacturing Overheads:*

Total manufacturing overheads = R2,400,000
Total labour hours = 120,000
Manufacturing overheads per labour hour = R2,400,,000 = R20/hour
Manufacturing overheads per unit = 3 hours/unit × R20/hour = R60/unit


*Total Cost per unit:*

Materials = R245/unit
Labour = R240/unit
Manufacturing Overheads = R60/unit
Total Cost per unit = R245 + R240 + R60 = R545/unit




This calculation provides the total cost per unit for each EnduroPro94 Smart Phone
.

B.
To calculate the budgeted monthly profit, we need: