Managing finance week-3 hand-in assignment

A computer manufacturer produces three types of devices:mobile phones, tablets, and computers. For the production of these three devices you have the following information:

	Phone	Tablet	Computer
Material cost per unit	£90	£140	£315
Direct labor hours per unit	2	2.5	4
Budgeted units	1,500,000	900,000	1,200,000

Labor cost per hour	£8
				Overhead costs per annum
				Utilities	£20,000,000
Rent	£15,000,000
Audit and legal	£5,000,000
Administrative staff	£40,000,000
Total	£80,000,000

ABC analysis suggested that overhead costs are distributed to the three products according to the table below:

Overheads	Phone	Tablet	Computer
Utilities	£8,000,000	£5,000,000	£7,000,000
Rent	£8,250,000	£2,250,000	£4,500,000
Audit and legal	£2,900,000	£1,250,000	£850,000
Administrative staff	£23,200,000	£6,000,000	£10,800,000

For each of the three products, the company aims at a different percentage for profit. Under the full absorption costing method and the targeted profit percentage, the prices of the three products should be:

	Phone	Tablet	Computer
Full costing price	£170.69	£233.87	£435.67

Calculate the aimed profit percentages for the three products and under the full absorption costing method, with overhead costs absorbed on the basis of direct labour hours.
Use the profit percentages that you derived in (1) and calculate the prices of the three products under the ABC system.
Recommend a cost system and include any changes that you would suggest to the pricing strategy of the computer company (target length 300 words).

Use the Turnitin link below to submit your assignment. Due: End Wednesday, Day 7.

Could you put your references as per harvard style also could you useAtrill, P. & McLaney, E. (2012)Management Accounting for Decision Makers. 7th ed. Harlow, England : Pearson Education Ltd. As part of your refrence

Calculate the price of your order

Type of paper needed:

Pages:

550 words

Academic level:

We'll send you the first draft for approval by September 11, 2018 at 10:52 AM

Total price:

$26

The price is based on these factors:

Academic level

Number of pages

Urgency

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.