XYZ Ltd produce Product A and Product B. It has three cost centres: Production Department for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
XYZ Ltd produce Product A and Product B. It has three cost centres: Production Department for A, Production Department for B and Canteen (service cost centre). Expected costs for the forthcoming year are: Quantity Produced (in units) Direct Cost: Total Direct Material cost Total Direct Labour hours (at a rate of £20 per hour) Production Department- Product A 800 Floor Area (square metres) Value of machinery Number of employees £42.000 1.500 hours Indirect Cost (Production overhead) Insurance of machinery Rent and utilities Cleaning cost Canteen salary Total Indirect Cost The following information has been provided Production Department Product A 2,000 £60.000 20 Required: a) Calculate the Total Prime Cost for each product Production Department for Product B 750 £38,000 1,400 hours 2.000 48,000 2,000 30.000 82,000 Production Department for Product B 1,600 £44.000 Canteen Canteen 200 b) Prepare an analysis of the production overheads (indirect cost) by completing apportionment or allocation to the two production cost centres and one canteen. c) Re-apportion the total canteen cost to the two production cost centres d) Calculate the total indirect production cost for each production department e) Calculate the total production cost for each product f) Calculate the production cost per unit for each product (round the answer to two decimal places) e) Calculate the selling price of each product if the mark up is 150% on the production XYZ Ltd produce Product A and Product B. It has three cost centres: Production Department for A, Production Department for B and Canteen (service cost centre). Expected costs for the forthcoming year are: Quantity Produced (in units) Direct Cost: Total Direct Material cost Total Direct Labour hours (at a rate of £20 per hour) Production Department- Product A 800 Floor Area (square metres) Value of machinery Number of employees £42.000 1.500 hours Indirect Cost (Production overhead) Insurance of machinery Rent and utilities Cleaning cost Canteen salary Total Indirect Cost The following information has been provided Production Department Product A 2,000 £60.000 20 Required: a) Calculate the Total Prime Cost for each product Production Department for Product B 750 £38,000 1,400 hours 2.000 48,000 2,000 30.000 82,000 Production Department for Product B 1,600 £44.000 Canteen Canteen 200 b) Prepare an analysis of the production overheads (indirect cost) by completing apportionment or allocation to the two production cost centres and one canteen. c) Re-apportion the total canteen cost to the two production cost centres d) Calculate the total indirect production cost for each production department e) Calculate the total production cost for each product f) Calculate the production cost per unit for each product (round the answer to two decimal places) e) Calculate the selling price of each product if the mark up is 150% on the production
Expert Answer:
Answer rating: 100% (QA)
Answer a Total Prime Cost for each product Prime cost Direct materials Direct labor For Product A Pr... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
Students also viewed these accounting questions
-
N balls labeled 1 through N are placed in Box 1 while a Box 2 is initially empty. At each time instant, one of the N balls is chosen (with equally probability) and moved to the other box. Let X [k]...
-
Prove that A n is simple for n 5, following the steps given. a. Show A n contains every 3-cycle if n 3. b. Show An is generated by the 3-cycles for n 3. c. Let r and s be fixed elements of {l, 2, ...
-
N sources of current with different emf's are connected as shown in Fig. 3.40. The emf's of the sources are proportional to their internal resistances, i.e. ε = aR, where a is an assigned...
-
Suppose that the following equations describe an economy: C = 170 + 0.60YD M s = 735; P = 1 T = 200 I = 100 - 4i Md = 0.75Y - 6i G = 350 a) what is the equation for equilibrium in the goods market?...
-
Interest is said to drive the stock market. But interest is paid on bonds and loans, while stocks pay dividends, never interest. It would seem that interest has nothing to do with the stock market....
-
What impact does the incorporation of found objects and unconventional materials have on the conceptual depth and narrative potential of mixed media artworks? Explain
-
Stability analysis with heat transfer. Set up the equations for steady state for the Bnard problem. Now perturb the temperature and use an energy equation to derive an equation for the temperature...
-
Owner Shan Lo is considering franchising her Happy Wok restaurant concept. She believes people will pay $5 for a large bowl of noodles. Variable costs are $1.50 a bowl. Lo estimates monthly fixed...
-
You purchase a Bond with a 11% Coupon Rate and a face value of $1000. Calculate the current value given the following factors: Years to Maturity Yield to Maturity (%) Current Price 5 9 5 6 6 6 B)...
-
Shopping cart Billing -------------- THE LANGUAGE ISC# C# An e-commerce company is currently celebrating ten years inbusiness They are having a sale to honor their privileged members.those who have...
-
Accounting Below is the trial balance for Amazing Graze Ltd, a Singapore-based high-tech farm, on 31 December 2021: Notes: (i) Amazing Graze Ltd made a 1 for 4 bonus issue on 31 December 2021, which...
-
A block of mass m = 2 kg goes down an inclined plane that makes an angle of 0=30 with the horizontal. The coefficient of friction between the surfaces of the block and the inclined plane is u=0.2. At...
-
MEGAFRAME COMPUTER COMPANY Balance Sheet As of December 31 ASSETS Cash $ 50,000 Accounts receivable 70,000 Inventory 110,000 Net plant and equipment 220,000 Total assets $ 450,000 LIABILITIES AND...
-
1. An economy produces two products, timber (T) and fish (F), according to the production possibilities table below. The usual assumptions apply. a) Plot the data from the production possibilities...
-
Prvoide detail explanation Which project will you realize? Net Present Value Calculation You manage a small company producing plastic pallets. Your (business) customers are companies using plastics...
-
1. Study the PPC diagram below and answer the questions that follow: Switzerland's PPC (chocolate and watches) Chocolate (millions of bars) 54 3 7 2 68 B X Z O 1 2 3 4 5 6 7 8 9 Watches (thousands)...
-
Sill Corporation manufactures a product. Budgeted unit sales for January, February, March and April are 9,900, 11,400, 11,900 and 13,400 units, respectively. Finished goods stock equals 20% of the...
-
7. Baladna wants to analyze process that includes delivery by suppliers, production inside the company, transportation to to its customers and information systems. Then it also wants to find out...
-
Mega Contractors sells to government agencies using a cost-plus contract and to private firms using fixed price contracts. What choices does Mega have in the design of its job costing system that...
-
Mathes Corporation manufactures paper products. The company operates a landfill, which it uses to dispose of nonhazardous trash. The trash is hauled from the two nearby manufacturing facilities in...
-
Why does the accountant use a linear representation of cost and revenue behavior in CVP analysis? How is this justified?
-
What methods can a company use to raise capital?
-
Does higher expected inflation increase, decrease, or have no effect on the required rate of return?
-
What are some of the advantages of equity financing?
Study smarter with the SolutionInn App