The Kelang Gum Boots Company has received a contract to manufacture 2000 pairs of children's boots. The boots pass through three departments: Moulding, Lining and Finishing. The following information is given.

Overhead absorption is calculated as follows.

Required

(a) Calculate the total cost of producing the batch of 2000 pairs of children's boots. 

(b) Calculate the cost of each pair of boots.

Transcribed Image Text:

Direct material per pair of boots Direct labour rate per hour Budgeted overhead expenditure Budgeted machine hours Budgeted direct labour hours Direct labour hours per pair of boots Machine hours per pair of boots Moulding $2 $3 $7 $6 $21 840 $11 375 7280 VETERU 0.25 0.5 Lining 4550 0.5 Finishing $6 $4368 1820 0.25