问答题
The Hi Life Co (HL Co) makes sofas. It has recently received a request from a customer to provide a one-off order of sofas, in excess of normal budgeted production. The order would need to be completed within two weeks. The following cost estimate has already been
prepared:
Prepare, on a relevant cost basis, the lowest cost estimate which could be used as the basis for the quotation.
Explain briefly your reasons for including or excluding each of the costs in your estimate.(10 marks)
Prepare, on a relevant cost basis, the lowest cost estimate which could be used as the basis for the quotation.
Explain briefly your reasons for including or excluding each of the costs in your estimate.(10 marks)
【正确答案】
1 Since the material is in regular use by HL Co, it is replacement cost which is the relevant cost for the contract.
2 30 m will have to be ordered from the alternative supplier for immediate delivery but the remaining 20 m can be used from inventory and replaced by an order from the usual supplier at a cost of $8·20 per m.
3 There is no cost for the first 150 hours of labour because there is spare capacity. The remaining 50 hours will be paid at time and a half, which is $16 x 1·5, i.e. $24 per hour.
4HL Co will choose to use the agency workers, who will cost $14 per hour, since this is cheaper than paying existing semi-skilled workers at $18 per hour ($12 x 1·5) to work overtime.
5 None of the general factory costs are incremental, so they have all been excluded. However, the supervisor’s overtime pay is incremental, so has been included. The supervisor’s normal salary, on the other hand, has been excluded because it is not
incremental.
6 These are general overheads and are not incremental, so no value should be included for them.
【答案解析】