Costing Calculations

1. Calculate the total direct labor costs for:

a. Pump production

b. Fan production

2. Calculate the unit cost of producing each product based on the full-costing approach.

1. Calculate the unit contribution of each product.

2. If annual output is all sold, calculate the total contribution of each product.

3. Calculate the profit/loss made by each product using full costing at the current output level.

4. Calculate the impact on the total profit of the business if production of Product Z is stopped.

1. Use the contribution/marginal-costing approach to calculate whether the new order will add to the profits of the business or not.

1. Use the contribution - or marginal-costing method and produce a new costing statement.

2. Should the repairs division be closed in order to increase profits?

1. Calculate the total revenue for each size of case. [4]

2. Calculate the total profit/loss made by each size of case. [2]

3. Calculate the total contribution made by each size of case. [4]