Mantinea Limited manufactures various kitchenware products. The following direct costs are incurred in producing a batch of

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Mantinea Limited manufactures various kitchenware products. The following direct costs are incurred in producing a batch of 2,000 food processors.

The factory overheads for the year are £3,000,000. Total machine hours for the year are 750,000 and each processor takes 4.5 hours of machine time to produce. The selling price of food processors is total absorption cost plus 50%.

Required

Calculate the total absorption cost of one food processor together with the selling price for each food processor produced by Mantinea Limited.

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Accounting For Business

ISBN: 9780198807797

3rd Edition

Authors: Peter Scott

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Question Posted: Aug 25, 2023 09:12 AM

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Mantinea Limited manufactures various kitchenware products. The following direct costs are incurred in producing a batch of

Question:

Materials Direct labour Direct expenses £ 22,500 16,500 13,000

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Absorption cost for one food processor Overhead absorption rate 3000000 750000 machine ...View the full answer

Accounting For Business

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