Accounts

stion A Shoes manufacturing business produces quality customized footwear to client's orders. The units were manufactured as Job #240. It has three production departments A, B and C whose overhead absorption rates are as follows: A B $190 per labour hour $156 per labour hour $168 per labour hour Direct production costs incurred are: Direct Materials Labour: Dept A Dept B Dept C $5000 40 hours @ $90.00 per hour 20 hours @ $70.00 per hour 10 hours @ $50.00 per hour General administrative expense is 25% of total cost. Profit is to be calculated at 20% mark-up. Required to: A. Calculate the selling price for job #240 (14 marks) B. State ONE (1) advantage and ONE (1) disadvantage of using the ABC approach. (2 marks) C. Outline the FOUR (4) stages of the ABC process (4 marks)