Prepare a report to management that includes three sections (parts A, B, C) addressing the issues outlined below
Western Waste Pty Ltd. produces mechanised garden waste composers for commercial landscapers. The produce three models, the ACE for mid-sized landscaping firms, the Bushman for industrial work and the compact for smaller jobs. Sales and direct cost data for these are provided in the tables below.
Western Waste uses a conventional normal costing system where manufacturing overhead is allocating using a pre-determined overhead rate based on direct labor dollars. Budgeted Direct labor dollars is determined based on budgeted annual sales and a budgeted wage rate of $20 per hour.
Ace Bushman Compact
Budgeted Annual Sales(units) 8000 15000 4000
Raw Materials $105.00 per unit $157.50 per unit $52.50 per unit
Direct Labor ($20 per hour)2.4 Hours per unit 1.8 hours per unit 1.2 hours per unit
Budgeted Manufacturing Overhead 8925000
Western Waste planned to sey a price for all its products equal to 150% of the full product cost.ment which includes 3 sections(parts A,B,C) ,address the issues accordingly which is in the attatchment, maximum of 1500 words