prototype of a product to be manufactured during the forthcoming quarter. The prototype passed through the...
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prototype of a product to be manufactured during the forthcoming quarter. The prototype passed through the tree and development team at CGH Manufacturing Enterprises has completed the development of s production departments-A B, and C. The following budgeted information on the prototype is availa The following information relates to the prototype: Direct material requisitioned Direct material returned to store Direct labour recorded against the prototype: Production department A Production department B 146 hours at R48.00 per hour 39 hours at R57.00 per hour 279 hours at R61.00 per hour Production department C A special machine was hired for the production of the prototype at a cost of R590.00, Machine hours recorded against the prototype: Production department A Production department B Production department C R97 470 43 R1 396 00 411 hours 657 hours 502 hours Price quoted for the prototype, including delivery R172 000. Administration and general overhead Selling and distribution overhead CGH Manufacturing Enterprises absorbs non-production overhead using the following pre-determined overhead absorption rates: 10% of production costs 12% of selling price REQUIRED: The product design and development team is convinced that the manufacturing and non-manufacturing costs of the prototype are unlikely to be significantly different from those of the product. Therefore, present an analysis of the total cost and profit or loss attributable to a unit of the product. prototype of a product to be manufactured during the forthcoming quarter. The prototype passed through the tree and development team at CGH Manufacturing Enterprises has completed the development of s production departments-A B, and C. The following budgeted information on the prototype is availa The following information relates to the prototype: Direct material requisitioned Direct material returned to store Direct labour recorded against the prototype: Production department A Production department B 146 hours at R48.00 per hour 39 hours at R57.00 per hour 279 hours at R61.00 per hour Production department C A special machine was hired for the production of the prototype at a cost of R590.00, Machine hours recorded against the prototype: Production department A Production department B Production department C R97 470 43 R1 396 00 411 hours 657 hours 502 hours Price quoted for the prototype, including delivery R172 000. Administration and general overhead Selling and distribution overhead CGH Manufacturing Enterprises absorbs non-production overhead using the following pre-determined overhead absorption rates: 10% of production costs 12% of selling price REQUIRED: The product design and development team is convinced that the manufacturing and non-manufacturing costs of the prototype are unlikely to be significantly different from those of the product. Therefore, present an analysis of the total cost and profit or loss attributable to a unit of the product.
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Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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