The assignment tries to cover the underlying cost fault with the organization. The product pricing did not include overheads associated with the product on the basis of man hours spent on various operational activities during the product life cycle (Job preparation, Scanning, Assembly, Output, and Quality Control).
The table below revaluates the overhead costs based on hours spent on jobs processing.
Job No | Revenue | Material Cost | Gross Margin | Job Prep | Scanning | Assembly | Output | QC | Net Profit | | | | | | | | | | | 61001 | 9600 | 5400 | 4200 | 368.85 | 2950.82 | 3872.95 | 737.70 | 645.49 | -4375.81 | 61002 | 9600 | 3500 | 6100 | 276.64 | 2213.12 | 3504.1 | 737.70 | 737.7 | -1369.25 | 61003 | 23000 | 4500 | 18500 | 645.49 | 3688.53 | 6915.98 | 1475.41 | 737.7 | 5036.89 | 61101 | 12000 | 1800 | 10200 | 368.85 | 1475.41 | 2766.39 | 368.85 | 368.85 | 4851.65 | 61102 | 11000 | 1500 | 9500 | 368.85 | 1475.41 | 2581.97 | 368.85 | 368.85 | 4336.07 | 61201 | 11000 | 1500 | 9500 | 368.85 | 1475.41 | 2950.82 | 368.85 | 553.28 | 3782.79 | 61202 | 23000 | 3300 | 19700 | 645.49 | 2950.82 | 5348.36 | 737.70 | 461.07 | 9556.56 | 61203 | 22000 | 3400 | 18600 | 553.28 | 3135.25 | 5901.64 | 737.70 | 553.28 | 7718.86 | 61204 | 20000 | 3200 | 16800 | 553.28 | 2766.39 | 5348.36 | 737.70 | 737.7 | 6656.57 | 61301 | 50000 | 13000 | 37000 | 1383.20 | 11987.70 | 23053.28 | 2950.82 | 2766.39 | -5141.39 | 61401 | 7800 | 1800 | 6000 | 461.07 | 1290.98 | 2950.82 | 368.85 | 368.85 | 559.43 | 61402 | 8000 | 3100 | 4900 | 368.85 | 1752.05 | 2950.82 | 737.70 | 645.49 | -1554.91 | 61403 | 8000 | 3900 | 4100 | 368.85 | 1844.26 | 3135.25 | 368.85 | 276.64 | -1893.85 | 61404 | 9000 | 2100 | 6900 | 368.85 | 2028.69 |