Bambino is an Italian company producing a range of dry baby food in packets and wet baby food in jars using different production processes. Carmetina, its management accountant, has estimated that the total manufacturing costs will include the supervisors’ salaries of €50,000 for the packet department, €56,000 for the jar department, and €30,000 for the canteen. Other overhead costs include depreciation of €57,145, cleaning materials of €6,000, and factory administration of €9,240.

REQUIRED:

a) Using the factory information shown in Table 11.13, allocate, apportion, and re-apportion these estimated costs to calculate a total estimated cost for the year for each of Bambino's manufacturing departments.

b) Calculate a rate for each of the manufacturing departments, using a machine-hour rate.

Transcribed Image Text:

Table 11.13 Baby food manufacturing department data Packet department Jar department Number of products 560,000 480,000 produced per annum Number of cleaning 40 80 times per annum Net book value of 458,200 652,300 equipment Personnel per 16 12 department Machine hours per year 1,600 1,245 Canteen 32,400 5