Question
A. A furniture manufacturing company got an order to produce 50 doors and 75 windows in the month of March, The following details are provided
A. A furniture manufacturing company got an order to produce 50 doors and 75 windows in the month of March, The following details are provided regarding the regular monthly production expenses and the expenses when the order is accepted. Job Order Details Reglar monthly Production Details Staff in work Hrs. 6,400 Hrs. 72,000 Machine was in operation Hrs. 4,800 Hrs. 60,000 Direct material OMR12,000 OMR 108,000 Direct labor OMR 6,400 OMR 90,000 Overhead cost - OMR 72,000 If you are the cost accountant of the furniture manufacturing company, how much would you determine the production overhead absorption rates in terms of Material, Labor, Labor hour rate, Machine hour rate. B. In the above problem, there are three elements of cost given, classify and explain these three elements of cost based on its functions.
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