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Exam 21/22 - 9.1 and 9.3

Exam 21/22 - 9.1 and 9.3

by Filipa Luisdotter Hansén Mesquita -
Number of replies: 2

Hello,

I'm not understanding what I'm doing wrong. In 9.1, the maintenance rate gave me 13 euros, considering that GMO allocates 50% of its direct costs (2500) to Maintenance. Thus, my total cost for Maintenance = 4000 + 2500 = 6500 and the total unit cost = 6500/500 LH = 13 euros. After, maintenance allocates 1300 euros to Cutting (13 euros * 100 LH) = 1300 euros. Also, GMO allocates llocates 50% of its direct costs (2500) to Cutting. So, the total cost for Cutting gave me = 10250 + 1300 + 2500 = 14050, which apparently is wrong. 

For 9.3, Gross Profit = Sales (from order no.3 which was the only one completed and invoiced = 31000) - COGS, which I included = 15 * 220 + 50*110 + 40*284 + 2800 + 900 = 71400, which is not the corre3ct answer again. 

Hope you can help me :) thanks

In reply to Filipa Luisdotter Hansén Mesquita

Re: Exam 21/22 - 9.1 and 9.3

by Filipa Luisdotter Hansén Mesquita -
I wanted to mention Midterm Exam Spring 21/22*
In reply to Filipa Luisdotter Hansén Mesquita

Re: Exam 21/22 - 9.1 and 9.3

by Pedro Pinto da Silva Perdigão -
Hello Filipa,

In 9.1 you forgot that the company is using the simultaneous equation method, as written in the question.

In 9.3 you used the wrong rate for the Design Department - it's 200€ and not 220€. If you use the correct rate you will get to COGS of 23 560€ and thus the correct profit.

Good study!