QUESTION 4 (20 MARKS) Comfy Limited manufactures glass ornaments and housewares. The business makes use of unskilled lab

[answerhappygod]

QUESTION 4 (20 MARKS) Comfy Limited manufactures glass ornamentsand housewares. The business makes use of unskilled labour andprovides training to do hand crafting of the goods. In January,they decided to add a fruit bowl to the range. It took 45.60 hoursto complete the first two fruit bowls. It was found that labourhours reduced as cumulative output increased, and it is expectedthat this trend will continue until 64 fruit bowls have beenmanufactured. The total number of hours to complete the next twofruit bowls was 41.04 hours. The labour and material costs tomanufacture the first four fruit bowls, which have already beensold, were as follows:  Direct materials: R1 360  Direct labour:R1 420 Additional information:  A gift shop owner saw these fruitbowls and has asked for a quotation for 12 to add to its range ofproducts.  Since the first four fruit bowls were manufactured, theprice of material increased by 8%, and the cost of labour by 15%. Comfy Limited paid the designer of the fruit bowl R1 600. They havecommitted to producing and selling only 64 of these fruit bowlswhich will be complete within the next few months.  Sundrymaterials amount to R1.50 per fruit bowl.  Other variablemanufacturing overheads are allocated at R1.00 per direct labourhour.  Monthly fixed costs of the business amount to R15 200, ofwhich 10% applies to the above order. Required: a) Calculate thelearning curve (4 marks) b) Calculate the quotation price for the12 fruit bowls if the business requires a profit margin of 25% onquotation price. Note: round off ALL calculations to the nearesttwo decimal places. (11 marks) c) Calculate the total time requiredto manufacture units 17 to 32 (5 marks) Note: Round off allcalculations to two decimal places.