Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

LMN makes hand embroidered sweatshirts to customer specifications. The following detail is available from the company's budget: Cost centre Overheads (RM) Activity Cutting and sewing

  1. LMN makes hand embroidered sweatshirts to customer specifications.

The following detail is available from the company's budget:

Cost centre

Overheads (RM)

Activity

Cutting and sewing

93,000

37,200 machine hours

Embroidering and packing

64,000

16,000 direct labor hours

Administration, selling and distribution overhead is absorbed into batch costs at a rate of 8% of total production cost. Selling prices are set to achieve a rate of return of 15% of the selling price.

Batch number 92 (an order for 45 shirts) has been produced. Details of activity on this batch are as follows:

Direct materials RM113.90

Direct labor

Cutting and sewing (0.5 labor hours at RM9 per hour) RM4.50

Embroidering and packing (29 labor hours at RM11 per hour) RM319.00

Machine hours worked in cutting and sewing 2

Fee paid to designer of logo for sweat shirts RM140.00

Calculate the selling price per shirt in batch number 92.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Note While the image provides some context its not directly used in the calculations for this problem The provided text contains all the necessary information Understanding the Problem We need to calc... blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: kieso, weygandt and warfield.

14th Edition

9780470587232, 470587288, 470587237, 978-0470587287

More Books

Students also viewed these Accounting questions