?Format Painter Font Clipboard A. ocation Analysis Data Location1 Location 2 Loc

Question

?Format Painter Font Clipboard A. ocation Analysis Data Location1 Location 2 Location 3 Direct material cost/unit Direct labor cost/unit Overhead/unit Transportation cost/unit Fixed Costs $165,000.00 $125,000.00 $180,000.00 $8.90 $5.70 $1.70 $1.60 $9.00 $5.30 $1.40 $1.35 $8.80 $5.00 $1.30 $1.20 Annual Production 70000 Total Costs Location 1 Location 2 Location 3 Fixed Costs Direct material cost Direct labor cost Overhead Transportation cost Total Least-cost location Location 2 #N/A #N/A #N/A #N/A #N/A #N/A Location 3 #N/A #N/A #N/A #N/A #N/A #NIA Formulas Location 1 Fixed Costs Direct material cost Direct labor cost Overhead Transportation cost Total #N/A #N/A #N/A HN/A #N/A #N/A 8 .9 30 Least-cost location- #N/A Sheet1

Explanation / Answer

Location analysis Data Location 1 Location 2 Location 3 Fixed costs $165,000.00 $125,000.00 $180,000.00 Direct Material cost / unit $9.00 $8.80 $8.90 Direct Labour cost / unit $5.30 $5.00 $5.70 Overhead /unit $1.40 $1.30 $1.70 Transportation cost / unit $1.35 $1.20 $1.60 Annual Production 70000 Data Location 1 Location 2 Location 3 Fixed costs $165,000.00 $125,000.00 $180,000.00 Direct Material cost $630,000.00 $616,000.00 $623,000.00 Direct Labour cost $371,000.00 $350,000.00 $399,000.00 Overhead cost $98,000.00 $91,000.00 $119,000.00 Transportation cost $94,500.00 $84,000.00 $112,000.00 Total $1,358,500.00 $1,266,000.00 $1,433,000.00 Least cost location Location 2

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