EX-8-7

Particulars Volume Batch Order Customer Total

Processing Processing Services

Activity 250 D/L hours 2 Batchers 01 order Not applicable

Production Overhead:

Indirect Labor 150.00 120.00 20.00 - 290.00

Factory equipment depreciation 1,000.00 34.00 - - 1,034.00
Factory administration 25.00 14.00 25.00 - 64.00

General Selling & Admin. Overhead:

Wages & Salaries 100.00 40.00 160.00 - 300.00

Depreciation - 6.00 10.00 - 16.00
Marketing Expenses 112.50 - 60.00 - 172.50
Total Cost 1,387.50 214.00 275.00 - 1,876.50
Product Margin
Sales (1,000 units x 20) 20,000.00
Less: Cost:
Direct material (1,000 units x 8.50) 8,500.00
Direct Labor (1,000 units x 6) 6,000.00
Volume related overhead 1,387.50
Batch related overhead 214.00
Order related overhead 275.00 (16,376.50)
PRODUCT MARGIN 3,623.50

Customer Margin
Product Margin 3,623.50
Less: Customer Services (01 customer x 2,463) (2,463.00)
Customer Margin 1,160.50
ex-8-8

Particulars Volume Batch Order Customer Total

Processing Processing Services

Activity 250 D/L hours 2 Batchers 01 order Not applicable

Production Overhead:

Indirect Labor 150.00 120.00 20.00 - 290.00

Factory equipment depreciation 1,000.00 34.00 - - 1,034.00
Factory administration 25.00 14.00 25.00 - 64.00

General Selling & Admin. Overhead:

Wages & Salaries 100.00 40.00 160.00 - 300.00

Depreciation - 6.00 10.00 - 16.00
Marketing Expenses 112.50 - 60.00 - 172.50
Total Cost 1,387.50 214.00 275.00 - 1,876.50
Sales (1,000 units x 20) 20,000.00
Less: Green Cost
Direct material (1,000 units x 8.50) (8,500.00)

GREEN MARGIN 11,500.00

Less: Yellow cost

Direct Labor (1,000 units x 6) 6,000.00
Indirect Labor 290.00
Marketing Expenses 172.50 (6,462.50)

YELLOW MARGIN 5,037.50

Less: Red Cost

Factory equipment depreciation 1,034.00
Factory administration 64.00
Selling and admin wages & salaries 300.00
Selling and admin depreciation 16.00 (1,414.00)

RED MARGIN 3,623.50

ex-8-9

Particulars Volume Batch Order Customer Total

Processing Processing Services

Activity 250 D/L hours 2 Batchers 01 order 01 customer

Production Overhead:

Indirect Labor 150.00 120.00 20.00 - 290.00

Factory equipment depreciation 1,000.00 34.00 - - 1,034.00
Factory administration 25.00 14.00 25.00 150.00 214.00

General Selling & Admin. Overhead:

Wages & Salaries 100.00 40.00 160.00 1,600.00 1,900.00

Depreciation - 6.00 10.00 38.00 54.00
Marketing Expenses 112.50 - 60.00 675.00 847.50
Total Cost 1,387.50 214.00 275.00 2,463.00 4,339.50
 ACTION ANALYSIS - CUSTOMER MARGIN
Sales (1,000 units x 20) 20,000.00
Less: Green Cost
Direct material (1,000 units x 8.50) (8,500.00)

GREEN MARGIN 11,500.00

Less: Yellow cost

Direct Labor (1,000 units x 6) 6,000.00
Indirect Labor 290.00
Marketing Expenses 847.50 (7,137.50)

YELLOW MARGIN 4,362.50

Less: Red Cost

Factory equipment depreciation 1,034.00
Factory administration 214.00
Selling and admin wages & salaries 1,900.00
Selling and admin depreciation 54.00 (3,202.00)

RED MARGIN 1,160.50