Reference no: EM132877442
Question - Erica company produces a unit where delivery of its units to customers are related with all of the overheads.
Computer expenditure and efficiency variance by ABC method.
Budget:
Overheads = 4,000
Output = 2,000 units
Deliveries = 20
Actual:
Overheads = 3,900
Output = 2,100 units
Deliveries to customers = 19
Cost are as follows:
A-Manual: Total fixed cost PM = 3,000
Variable cost per case = 48
B-Semi-Automatic:
Total fixed cost PM = 9,000
Variable cost per case = 28
C-Fully automatic:
Total fixed cost PM = 25,000
Variable cost per case = 8
Identify the indifference and state your results. For what volume of cases it will be preferred between each of A, B and C?
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