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Dear Tutor,
Activity 1: Targeting costing
House it Co produces rabbit hutches. Selling price $125 margin 25%.
Cost:
-Timber 10m @$48
-Felt roofing 2sq.m @$17.50/sq.m
-Wire 1m @$1.50m
-Labour @$7/hour
-Variable overhead @$1.50 per labour hour1. Target cost my answer $93.75 same as BPP.
2. Expected cost to make hutch my answer $93.00. BPP $101.50.
BPP’s answer assumes it take take 2 hours to make the hutch. I assumed 1 hour as no duration given.-Robbie.
I am sorry but I only have the BPP Revision Kit and so I cannot explain without seeing the whole of the question.
I have just found this too, does any know if BPP publish an errata sheet? like Kaplan when you purchase a book.
I think this question is missing information from it on page 61 of the workbook/text book.
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