A. Bright Co. has three production departments Star, Shine, and Spark and one service department Shade....
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A. Bright Co. has three production departments Star, Shine, and Spark and one service department Shade. Bright Co is preparing its annual budget for the final quarter of 2021. Planned overhead costs for the quarter are as follows: Overheads Allocated overheads Supervision Depreciation Machine Insurance Rates and Rent 40,000 14,400 18,000 6,000 36,000 The following information is available for each department: Departmental details Star Shine Spark Shade Allocated overhead 12,500 14,000 10,250 3,250 Machine Value () 5,000 2,500 3,500 1,500 Budgeted Direct Labour hours 1,000 500 1,500 1,000 Floor Area Occupied (Square metres) 1,500 400 500 100 Of the total overhead costs allocated to the service department Shade, 30% is charged to Star and the remainder is charged equally to Shine and Spark. a. Prepare an overhead analysis sheet showing the total overhead cost budgeted for all four departments. You must show all your workings (25 marks) clearly. a. Allocate the services department Shade's costs to all production (5 marks) departments. a. Glow+ is one of the leading products of Bright Co. Bright Co. plans to earn 20% profit on per unit cost of Glow+. Standard cost: Glow+ Direct Materials per unit Direct Labour per unit Labour hours per unit of each department: Star Shine Per Unit 60 64 213 2 1 3 Spark Calculate the unit price of Glow+ using the above information. A. Bright Co. has three production departments Star, Shine, and Spark and one service department Shade. Bright Co is preparing its annual budget for the final quarter of 2021. Planned overhead costs for the quarter are as follows: Overheads Allocated overheads Supervision Depreciation Machine Insurance Rates and Rent 40,000 14,400 18,000 6,000 36,000 The following information is available for each department: Departmental details Star Shine Spark Shade Allocated overhead 12,500 14,000 10,250 3,250 Machine Value () 5,000 2,500 3,500 1,500 Budgeted Direct Labour hours 1,000 500 1,500 1,000 Floor Area Occupied (Square metres) 1,500 400 500 100 Of the total overhead costs allocated to the service department Shade, 30% is charged to Star and the remainder is charged equally to Shine and Spark. a. Prepare an overhead analysis sheet showing the total overhead cost budgeted for all four departments. You must show all your workings (25 marks) clearly. a. Allocate the services department Shade's costs to all production (5 marks) departments. a. Glow+ is one of the leading products of Bright Co. Bright Co. plans to earn 20% profit on per unit cost of Glow+. Standard cost: Glow+ Direct Materials per unit Direct Labour per unit Labour hours per unit of each department: Star Shine Per Unit 60 64 213 2 1 3 Spark Calculate the unit price of Glow+ using the above information.
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