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A. Barbarossa Ltd is a Turkish factory that produces premium handmade rugs. These rugs go under two production departments: Stage I and Stage II. The
A. Barbarossa Ltd is a Turkish factory that produces premium handmade rugs. These rugs go under two production departments: Stage I and Stage II. The following information is for the Stage I Department in May 2021: Work in process, May 1st: Units (80% complete for materials and 40% complete for labour) Direct materials Direct labour 40,000 90.000* 60,000* * TL: Turkish Lira During May, 57,000 units were completed and transferred to the Stage II Department. The incurred costs for direct materials and direct labour in Stage I Department during May were 25,000 and 13,000 TL, respectively. On 31st May, 12,000 units remained in the Stage I Department. These remaining units were 95% and 85% complete for materials and labour costs, respectively. B. In addition to the production of the standard sizes of handmade rugs, Barbarossa accepts customised orders from its online store on Etsy. The following information is for Job10UK, for a UK customer, in June 2021. Direct material 3,000 Direct labour 4,340 Barbarossa Ltd pays annual fees of 1000 for its Etsy store which cover all its online customised orders. Job10UK used 20 labour hours with 124 labour hours being used by all Etsy store jobs this year. Required: Compute the indirect costs allocated to Job10UK and the total cost for Job1OUK (calculate the cost in sterling pounds). (15 marks
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