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Question 1Job No.909 was completed in three departments of a factory. Costs details for this job were:Department Direct materials (RM) Direct wages(RM) Direct labour hoursX 650 800 1,000Y 940 300 400Z 230 665 700The production overheads are absorbed into the jobs using predetermined departmental overhead absorption rates based on the direct labour hours. The administrative overhead is absorbed as a percentage of production cost.The figures for the last cost period for the three departments on which the current overhead recovery rates are base were as follows:Department X Y ZDirect materials (RM) 6,125 11,360 25,780Direct wages (RM) 9,375 23,400 54,400Direct labour hours 12,500 36,000 64,000Production overheads (RM) 5,000 7,200 9,600Administrative overheads (RM) 2,870 14,686 8,978Required:Prepare a cost card showing the cost of Job No.909 and to show the price charged, assuming a profit margin of 20%.

Question

Question 1Job No.909 was completed in three departments of a factory. Costs details for this job were:Department Direct materials (RM) Direct wages(RM) Direct labour hoursX 650 800 1,000Y 940 300 400Z 230 665 700The production overheads are absorbed into the jobs using predetermined departmental overhead absorption rates based on the direct labour hours. The administrative overhead is absorbed as a percentage of production cost.The figures for the last cost period for the three departments on which the current overhead recovery rates are base were as follows:Department X Y ZDirect materials (RM) 6,125 11,360 25,780Direct wages (RM) 9,375 23,400 54,400Direct labour hours 12,500 36,000 64,000Production overheads (RM) 5,000 7,200 9,600Administrative overheads (RM) 2,870 14,686 8,978Required:Prepare a cost card showing the cost of Job No.909 and to show the price charged, assuming a profit margin of 20%.

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Solution

Para resolver esta pregunta, debemos seguir los siguientes pasos:

  1. Calcular las tasas de absorción de los costos indirectos de producción para cada departamento, basándonos en las horas de trabajo directo.

2

Similar Questions

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