AisyAlisya Wedding Planner involved in designing bridal dais. The company received two different orders from two...
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AisyAlisya Wedding Planner involved in designing bridal dais. The company received two different orders from two different customers. However, due to shortage of materials and limited amount of labour resources, the manager needs to decide the best order to be accepted. The following table shows the related costs for each of the job order. Cost Fresh Flowers Curtain and Fabric Grass carpet Cinderella Chair Professional Designer fees Direct Labour Cost Direct Labour Hour Overhead absorption rate Administration expenses Price charged to customer iii. iv. Order A Theme: Garden Wedding RM 4,000 RM 2,500 RM 2,100 Prime Cost Production Cost Total Cost Profit earned RM 1,000 RM 1,100 22 hours RM22.50 per direct labour hour RM150 RM 14,999 Order B Theme: Fantasy Wedding RM 2,700 RM 3,300 RM 5,000 RM 1,000 RM 1,440 24 hours *Grass carpet and Cinderella chair are the additional expenses need to be incurred specifically to satisfy the customer's order. Required: a) Prepare a job cost sheet for each of the Job Order above by showing the detail of the following: i. RM23.00 per direct labour hour RM170 RM14,999 b) Identify which is the best order to be accepted by AisyAlisya Wedding Planner and give appropriate reason to support your answer. AisyAlisya Wedding Planner involved in designing bridal dais. The company received two different orders from two different customers. However, due to shortage of materials and limited amount of labour resources, the manager needs to decide the best order to be accepted. The following table shows the related costs for each of the job order. Cost Fresh Flowers Curtain and Fabric Grass carpet Cinderella Chair Professional Designer fees Direct Labour Cost Direct Labour Hour Overhead absorption rate Administration expenses Price charged to customer iii. iv. Order A Theme: Garden Wedding RM 4,000 RM 2,500 RM 2,100 Prime Cost Production Cost Total Cost Profit earned RM 1,000 RM 1,100 22 hours RM22.50 per direct labour hour RM150 RM 14,999 Order B Theme: Fantasy Wedding RM 2,700 RM 3,300 RM 5,000 RM 1,000 RM 1,440 24 hours *Grass carpet and Cinderella chair are the additional expenses need to be incurred specifically to satisfy the customer's order. Required: a) Prepare a job cost sheet for each of the Job Order above by showing the detail of the following: i. RM23.00 per direct labour hour RM170 RM14,999 b) Identify which is the best order to be accepted by AisyAlisya Wedding Planner and give appropriate reason to support your answer.
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particulars ORDER A GARDEN WEDDING ORDER B FANTASY WEDDING FRESH FLOWERS ... View the full answer
Related Book For
OM operations management
ISBN: 978-1285451374
5th edition
Authors: David Alan Collier, James R. Evans
Posted Date:
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