Question: Robotool Limited is a machine shop that manufactures replacement parts for industrial machinery. Production at Robotool is characterized by small lot sizes and precision
Robotool Limited is a machine shop that manufactures replacement parts for industrial machinery. Production at Robotool is characterized by small lot sizes and precision manufacturing. A recent production run of five (5) gears, Job 2B38, required the following activities and costs: Raw materials requisitioned: 10 kilograms of brass at K11.65 a kilogram. Labour: Cutting & forming Lathe & machining 4 Finishing Hour Rate K 9.75 3 K11.50 1 K10.00 Robotool charges overhead to jobs on the basis of direct labour hours at a predetermined rate of K25 an hour. Required: Prepare a Job Cost Sheetfor Job 2B38, and calculate the total costof Job 2B38 and the average cost per unit produced.
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