Question: please help me solve for a thumbs up Question Three (3a) Wambenzy woodworks has received an order for the manufacture of 96 desks from the
Question Three (3a) Wambenzy woodworks has received an order for the manufacture of 96 desks from the newly established school in Kumasi, Grace preparatory school. The standard specification for twelve desks is as follows: Materials Standard quantity Standard price Materials Standard quantity Standard price Odum (size 2" by 4") 10 metres GH400 per 20 metres Wawa 45 sq. metres GH80 per 60 sq. metres Polish 72 litres GH40 per litre Labour: Standard time Standard rate Labour Standard time Standard rate Carpenters 1.920 minutes GH5 per hour Polishers 900 minutes GH4 per hour Royalties payment GH20 Annual overheads: Fixed GH18,000 Variable GH9,000 Overheads are allocated on the basis of direct labour hours. Budgeted level of activity will be working hours per week 30, week per annum 50, employees 6. Gross profit is at the rate of 331/3% of the selling price. You are required to: (a) Calculate the price of one desk. (b) Calculate the total price of the order. (Marks12) Three (3) i. Indicate the reasons why the purchase department should function as a separate department ii. State and explain four (4) the advantages of a centralized purchase function Total (8Marks) (Total marks 20) b. Total (12Marks)
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