Classic Pen Company
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Title: Classic Pen Company

Essay Details:

Subject: Business
Author: Karen S
Date: March 8, 2015
Level: University
Grade: A
Length: 3 / 704

Essay text:

And the data pushed management question the cost structure. COMPANY DATA Company is producing the following unit of products with correcponding Sales Revenues. Currently Overhead Cost structure is allocated on the basis of sales revenues. Where Overhead of Blacks is around 50% with a value of $30,000, Blue 40% with a value of $24,000, Red 9% with a value of $5,400 and Purple 1% with a value of $600. Based on the above data the Return on Sales is caculated as follows; When the management decided to reallocate the costs according to ABC Costing; they found out the following data; 1) The costs are Material Cost, Direct labour and Overhead Costs...

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