Cases in Cost Management 3rd Edition by John Shank

تمرين 2

Recalculate die cost of a Navy blanket under the following assumptions:
a. Only raw material cost is variable
b. All fixed costs (labor, factory overhead and SM A) are assigned to products based on capacity utilization at "normal volume."
c. Normal volume is 85% of capacity.
d. Use the same format as in Question 6.