A factory has three production departments - Preparation, Assembly and Finishing together with two service departments...
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A factory has three production departments - Preparation, Assembly and Finishing together with two service departments - Maintenance and Material handling. The budgeted information for the year 2010 is as follows: Department Overhead Cost Allocated/Apportion Capacity Utilization Preparation $ 360 000 Assembly 8 000 machine hours 24 000 man hours 192 000 Finishing Maintenance 168 000 24 000 man hours 24 000 Material Handling 16 000 The service department costs should be reapportioned to the production department as follows: Preparation Maintenance Assembly 10% 60% 40% Finishing 30% 30% Material Handling 30% The wages relating to the preparation department are overhead costs. In the Assembly and Finishing department the wage rate is $2.10 per hour. The administration and selling overheads are to be absorbed in the job cost at 20% of production cost. Distribution should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job #482. The following information is available for job # 482: Direct Material $410 Time Required Preparation Assembly Finishing $166 30 machine hours 40 man hours 50 man hours Special Design Distribution Quote From Haulage Company $150 REQUIRED: Calculate the total cost and quotation price for job #482 where a profit margin of 25% on selling price is applied. A factory has three production departments - Preparation, Assembly and Finishing together with two service departments - Maintenance and Material handling. The budgeted information for the year 2010 is as follows: Department Overhead Cost Allocated/Apportion Capacity Utilization Preparation $ 360 000 Assembly 8 000 machine hours 24 000 man hours 192 000 Finishing Maintenance 168 000 24 000 man hours 24 000 Material Handling 16 000 The service department costs should be reapportioned to the production department as follows: Preparation Maintenance Assembly 10% 60% 40% Finishing 30% 30% Material Handling 30% The wages relating to the preparation department are overhead costs. In the Assembly and Finishing department the wage rate is $2.10 per hour. The administration and selling overheads are to be absorbed in the job cost at 20% of production cost. Distribution should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job #482. The following information is available for job # 482: Direct Material $410 Time Required Preparation Assembly Finishing $166 30 machine hours 40 man hours 50 man hours Special Design Distribution Quote From Haulage Company $150 REQUIRED: Calculate the total cost and quotation price for job #482 where a profit margin of 25% on selling price is applied.
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Calculations of overhead costs for Preparation department Particulars Amount Overhead Cost 360000 Se... View the full answer
Related Book For
Management And Cost Accounting
ISBN: 9781292232669
7th Edition
Authors: Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan
Posted Date:
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