Reference no: EM13978431
Profit Calculations (Engineering Cost Analysis II)
Determine the total cost to make one Leather Belt based on the data provided below. Show all costs per Leather Belt to THREE decimal places.
Cost of One Processed Cow Hide = $ 150.00
Average Number of Leather Belts per Cow Hide = 30
Leather Cost for One Leather Belt = Hide Cost divided by Belts per Hide =
Cost of Thread = $ 0.003 per Leather Belt
Cost of Fifty Belt Buckles = $20.00
Cost of One Belt Buckle = $20.00 divided by 50 =
Preprinted Cardboard Box Cost Each = $0.504 per box.
Preprinted Box Cost per Leather Belt = $0.504 divided by 28 =
Pallet Cost = $82.32 per pallet.
Leather Belts per Pallet from Module Four = 2,352
Pallet Cost per Leather Belt = Pallet Cost divided by Leather Belts per Pallet =
Annual Payroll Cost for One Employee = $24,000 per year.
Number of Employees (1 Die, 2 Hole Punch, 1 Buckle, 1 Box) = 5 Employees
Annual Payroll Cost per Employee multiplied by 5 Employees =
Annual Output = 15,000 Leather Belts per week multiplied by 50 weeks =
Labor Cost per Leather Belt = Annual Payroll divided by Annual Output =
Fixed Overhead Cost per Leather Belt = $0.365 per Leather Belt.
Variable Overhead Cost per Leather Belt = $0.125 per Leather Belt
Total Cost Summary per Leather Belt
Cost Category Description
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Cost per Leather Belt
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Leather Cost per Belt =
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Thread Cost per Belt =
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Buckle Cost per Belt =
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Box Cost per Belt =
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Pallet Cost per Belt =
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Labor Cost per Belt =
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Fixed Overhead Cost per Belt =
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Variable Overhead Cost per Belt =
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Grand Total of All the Above Costs =
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