EMC 2033 – Manufacturing Technology Assignment

4 Pages674 Words126 Views

Manufacturing Technology (EMC 2033)

Added on 2020-04-13

EMC 2033 – Manufacturing Technology Assignment

Manufacturing Technology (EMC 2033)

Added on 2020-04-13

BookmarkRelated Documents

Question 2: Cost of the product 1Name: Course:Professor:Date:

EMC 2033 – Manufacturing Technology Assignment_1

Question 2: Cost of the product 2Question 2: Cost of the product The case study involves the production of pump housing. The production which is required is of 1000 units for a client at minimum cost. The cost of the product arrives from different costs which are achieved during the production process. From the case study, the cost of materials and tooling are supplied by the client and therefore this reduces the cost of production. Direct labor cost is of portion which composes the overall cost of the product. From the case study, the labor cost is charged for an hour basis (Production Costs, 2015). Since the whole part will take 100 hours for assembling, at a rate of EAD 10/hr, the total labor cost will be;= 100 hr x AED 10/hr = AED 1,000.In addition, the process of production constitutes factory overhead costs as well. The factory overhead is the costs which are incurred during the manufacturing process. This cost excludes the direct labor costs and the cost of the materials (Films Media Group & TV Choice Productions, 2017). From the case study, the factory overhead cost stands at a rate of 250% of the direct labor costs. Therefore the total factory overhead cost incurred in the manufacturing of this item is;= AED 1,000 x 250/100 = AED 2,500.Lastly, another cost which is incurred in the manufacturing process in this case study is the corporate overhead cost. These are the costs which are related to the running of the organization to ensure that it will be able to produce the products (Antràs, 2016). From the case study, the rateof the corporate cost stands at 600% of the direct labor cost. The total corporate cost will be; = AED 1,000 x 600/100 = AED 6,000.

EMC 2033 – Manufacturing Technology Assignment_2

End of preview

Want to access all the pages? Upload your documents or become a member.

Estimation of Product Cost Study

|650

|78

Accounting For Manufacturing Assignment 2022

|688

|49

Cost Sheet for Desklib - Direct Material, Direct Labor and Overhead Costs

|16

|2147

|161

Assignment on Preparing a Flexible Budget - Desklib

|10

|1661

|362

Assignment Economics and Finance

|12

|2114

|154

Accounting and Finance for Decision Making

|2263

|23

EMC 2033 – Manufacturing Technology Assignment