Business Administration 2257 Study Guide - Foreign Object Damage, Case Competition

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: Ian Dunn

Document Summary

We" re home grown good for hockey, ppl buy. Direct cost: all the traceable cost per unit made. Absorption cost: all the manufacturing costs per limit (wip account) Full costs: all the costs of the business allocated to one unit. Direct cost/unit (material, labour, selling xps) = 47. 00. Absorption cost/unit (all production costs, material, labour, foh: direct cost (less ) : . 50, foh/chair: total=4680, per chair = . 14. Foh allocation rat: use dl as proxy pdl/tdl * foh = pfoh = 2. 4/1050 * 4680 =11. 14. Fod:11. 14: total admin oh = 20,860, (135/56700) * 20860. Don"t really have capability to make more. Increase in sales could put strain on supply. More products more, labour more, more costs. Already demand for it from paul francis . Staying with a market we know (saturated market?) Absorption cost:9. 00: creating more chairs costs go down with proxy.