B) K Ltd manufactures Product 20K. Information relating to this product is given below. Budgeted output...

  

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B) K Ltd manufactures Product 20K. Information relating to this product is given below. Budgeted output for the year: 900 units Standard details for one unit: Direct material Direct wages: 40 square metres at GHC5.30per square metre Bonding department 24 hours at GHC5.00 per hour Finishing department 15 hours at GHC4.80 per hour Budgeted costs and hours per annum are as follows: GHC Hours Variable overhead Bonding department 45,000 30,000 Finishing department 25,000 25,000 Fixed overhead apportioned to this product: Production Selling, distribution and administration 36,000 27,000 Note: Variable overheads are recovered (absorbed) using hours, fixed overheads are recovered on a unit basis. Required: Prepare a standard cost card in order to establish the standard cost of one unit of Product 20K and enter the following subtotals on the card: (i) Prime cost (ii) Marginal cost (iii) Total absorption cost (iv) Total standard cost. (20 Marks) B) K Ltd manufactures Product 20K. Information relating to this product is given below. Budgeted output for the year: 900 units Standard details for one unit: Direct material Direct wages: 40 square metres at GHC5.30per square metre Bonding department 24 hours at GHC5.00 per hour Finishing department 15 hours at GHC4.80 per hour Budgeted costs and hours per annum are as follows: GHC Hours Variable overhead Bonding department 45,000 30,000 Finishing department 25,000 25,000 Fixed overhead apportioned to this product: Production Selling, distribution and administration 36,000 27,000 Note: Variable overheads are recovered (absorbed) using hours, fixed overheads are recovered on a unit basis. Required: Prepare a standard cost card in order to establish the standard cost of one unit of Product 20K and enter the following subtotals on the card: (i) Prime cost (ii) Marginal cost (iii) Total absorption cost (iv) Total standard cost. (20 Marks)