Burns Limited has three production departments (processing, assembly and finishing) and two service departments (administration and work

Question:

Burns Limited has three production departments (processing, assembly and finishing) and two service departments (administration and work study). The following information relates to April 2018:

Apportionment of costs: 

Total machine hours: Processing 25 000 

All units produced in the factory pass through the three production departments before they are put into stock. Overhead is absorbed in the processing department on the basis of machine hours, on the basis of direct labour hours in the assembling department, and on the basis of the direct labour cost in the finishing department. 

The following details relate to unit XP6:

XP6: Number of machine hours in the processing department = 6 


Required:

Calculate the total cost of producing unit XP6.

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Related Book For  book-img-for-question

Accounting For Non-Accounting Students

ISBN: 9781292128979

9th Edition

Authors: John R. Dyson, Ellie Franklin

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