Anglo Co. Ltd has three production departments X, Y, Z and two departments A and B....

 

Transcribed Image Text:

Anglo Co. Ltd has three production departments X, Y, Z and two departments A and B. The following estimated figures for a certain period have been made available: Rent and Rates Lighting and Electricity Indirect Wages Power Depreciation of Machinery Other Expenses and Sundries Following further details are also available: Floor Space (sq. mts) Light Points (Nos.) Direct Wages ($) Horsepower of machines Cost of Machinery ($) Working hours Total 10,000 120 20,000 300 1,00,000 X 2,000 20 6,000 120 Y 2,500 30 4,000 60 24,000 32,000 4,670 3,020 $10,000 $1,200 $3,000 $3,000 $20,000 $20,000 Z A 3,000 2,000 40 20 6,000 3,000 100 20 40,000 2,000 2,000 3,050 - B 10% 10% B 500 10 1,000 - The expenses of the service departments of A and B are to be allocated as follows: X Y Z A A 20% 30% 40% B 40% 20% 30% You are required to calculate the overheads absorption rate per hour in respect of the three production departments. What will be the total cost of an article with material cost of $80 and direct labour cost of $40 which passes through X, Y and Z departments for 2, 3 and 4 hours, respectively? Anglo Co. Ltd has three production departments X, Y, Z and two departments A and B. The following estimated figures for a certain period have been made available: Rent and Rates Lighting and Electricity Indirect Wages Power Depreciation of Machinery Other Expenses and Sundries Following further details are also available: Floor Space (sq. mts) Light Points (Nos.) Direct Wages ($) Horsepower of machines Cost of Machinery ($) Working hours Total 10,000 120 20,000 300 1,00,000 X 2,000 20 6,000 120 Y 2,500 30 4,000 60 24,000 32,000 4,670 3,020 $10,000 $1,200 $3,000 $3,000 $20,000 $20,000 Z A 3,000 2,000 40 20 6,000 3,000 100 20 40,000 2,000 2,000 3,050 - B 10% 10% B 500 10 1,000 - The expenses of the service departments of A and B are to be allocated as follows: X Y Z A A 20% 30% 40% B 40% 20% 30% You are required to calculate the overheads absorption rate per hour in respect of the three production departments. What will be the total cost of an article with material cost of $80 and direct labour cost of $40 which passes through X, Y and Z departments for 2, 3 and 4 hours, respectively?