The following information relates to the activities of the production department of Clough Limited for the month

Question:

The following information relates to the activities of the production department of Clough Limited for the month of March 2017:

The company adds a margin of 50 percent to the total production cost of specific units in order to cover administration expenses and to provide a profit. 


Required:

(a) Calculate the total selling price of order number 123 if overhead is absorbed using the following methods of overhead absorption: direct labour hours; machine hours. 

(b) State which of the two methods you would recommend for the production department.

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Related Book For  book-img-for-question

Accounting For Non-Accounting Students

ISBN: 9781292128979

9th Edition

Authors: John R. Dyson, Ellie Franklin

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