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Asfiza Group manufactures customized equipment for local market. The data for the period ended 30 December 2020 were as follows: Machining Finishing department department Budgeted
Asfiza Group manufactures customized equipment for local market. The data for the period ended 30 December 2020 were as follows: Machining Finishing department department Budgeted overhead RM50,000 RM65,000 Actual direct labour hours 5,000 hours 6,000 hours Budgeted direct labour 5,400 hours 5,800 hours hours Actual machine hours 6,200 hours 4.700 hours Budgeted machine hours' 5,700 hours 5,300 hours An order is received from Encik Fahim to manufacture an equipment for his personal use. The data related to the costs of the equipment were as follows: Direct material: A RM1,500 B RM2,100 Direct labour Machining 500 hours @ RM2.50 per hour Finishing 450 hours @ RM3.20 per hour Hire of special machine RM1,200 Administrative expenses 15% of factory costs Machine hours: Machining 321 hours Finishing 670 hours Profit 25% of total cost Overhead absorption is based on machine hour for the Machining department and direct labour hour for Finishing department. Required: a) Prepare a Job Cost Sheet showing the prime cost, total cost and selling price for the equipment
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