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Brick by Brick (BBB) is a building business that provides a range of building services to the public. Recently they have been asked to quote for garage conversions (GC) and extensions to properties (EX) and have found that they are winning fewer GC contracts than expected.
BBB has a policy to price all jobs at budgeted total cost plus 50%. Overheads are currently absorbed on a labour hour basis. BBB thinks that a switch to activity based costing (ABC) to absorb overheads would reduce the cost associated to GC and hence make them more competitive.
You are provided with the following data:
A typical GC costs $3,500 in materials and takes 300 labour hours to complete. A GC requires only one site visit by a supervisor and needs only one planning document to be raised. The typical EX costs $8,000 in materials and takes 500 hours to complete. An EX requires six site visits and fi ve planning documents. In all cases labour is paid $15 per hour.
Required:
(a) Calculate the cost and quoted price of a GC and of an EX using labour hours to absorb the overheads. (5 marks)
(b) Calculate the cost and the quoted price of a GC and of an EX using ABC to absorb the overheads. (5 marks)
(c) Assuming that the cost of a GC falls by nearly 7% and the price of an EX rises by about 2% as a result of the change to ABC, suggest possible pricing strategies for the two products that BBB sells and suggest two reasons other than high prices for the current poor sales of the GC. (6 marks)
(d) One BBB manager has suggested that only marginal cost should be included in budget cost calculations as this would avoid the need for arbitrary overhead allocations to products. Briefl y discuss this point of view and comment on the implication for the amount of mark-up that would be applied to budget costs when producing quotes for jobs. (4 marks)
A、neither that one is
B、neither isn’t that one
C、either is not that one
D、and neither is that one
We don't deny that your products are superior in quality to ______ of Japanese make.
A) the one B) that C) these D) those
— If you don't believe in yourself, no one else will.
— _____. Confidence is really important.
A: That's not the point
B; I don't think so
C; I couldn't agree more
A.Each at one time
B.One by one time
C.voyage
D.One at a time
A.they
B.all
C.both
D.them
A.I don’t know
B.It’s been delayed one hour
C.You have to be patient
D.Don’t ask me
– I’m sorry that I’ve broken your radio.
-- ______. I have got another one in my office.
A.I don’t care
B.It doesn’t matter
C.It’s nothing
D.I’m unlucky today
Among the following which one is not the negative consequence according to the passage？
A．The kids are emotionally fragile and they can't stand on their own.
B．They don't know how to make sound decisions.
C．They aren't equipped to deal with failure and frustration.
D．They are lucky to have their parents aroun
Most of the time, no one will care about natural disasters, and they won't()avoiding disasters till one has really struck.
A.be serious about
B.fresh from
C.get used to
D.look down upon
