A customer requests the production of a product from the company in question 9 above. The company estimates its direct labour and material costs will be £30 and £90, respectively. The job will pass through each of the three machine groups, spending 4 hours in group 1, 7 hours in group 2, and 5 hours in group 3.

Required:

Prepare a job cost sheet for the above job, showing clearly the prime and factory cost of manufacture.

Question 9

A company has three different groups of machines for which it wishes to establish machine rates. A budget for the year ending 31 December 1985 shows the following overhead:

Additional information available:

Transcribed Image Text:

Consumable supplies: machine group 1 200 machine group 2 400 machine group 3 500 Maintenance: machine group 1 500 machine group 2 1,000 machine group 3 800 Power 3,000 Rent and rates 600 Heat and light 1,800 Insurance of buildings 300 Insurance of machinery 1.000 Depreciation of machinery 8,000 Supervision 1,800 19,900