Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(B1) DKM Leicester Limited estimates to spend 120,000 for heating the factory during the year 2022 financial year, calculate the heating cost that should be

(B1) DKM Leicester Limited estimates to spend 120,000 for heating the factory during the year 2022 financial year, calculate the heating cost that should be allocated to each of the three production departments (5 marks)

image text in transcribed
determination in business. Give examples it possible (3 marks) (B) DKM Leicester Limited manufactures Student metal beds in three production departments in their Leicester production hub: The departments are Manufacturing, Finishing, and Packaging, DKM Leicester Limited also have three service departments, namely: Quality Control, Stores and Maintenance. The company uses an absorption costing system to analyse product costs, and you have been supplied with the following information in relation to the production departments as indicated in Table 1 below: Table 1 Base Number of employees Machinery value (ES) Factory area (aquare metres) Factory volume (cubic metres) Water usage (litres) Machine hours Manufacturing 20 100,000 218 25,000 15,000 95.000 Finishing 16 75.000 260 44.000 12.000 56,000 Packaging 17 50,000 290 40.000 12,000 26,000 Total 53 235,000 768 110,000 39,000 177.000 Text (B1) DKM Lolcoster Limited estimates to spend 120,000 for heating the factory during the year 2022 financial year, calculate the heating cost that should be allocated to each of the three production departments

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Maintenance Audits Handbook A Performance Measurement Framework

Authors: Diego Galar Pascual, Uday Kumar

1st Edition

1466583916, 978-1466583917

More Books

Students also viewed these Accounting questions

Question

Explain all drawbacks of the application procedure.

Answered: 1 week ago

Question

Determine Leading or Lagging Power Factor in Python.

Answered: 1 week ago

Question

6. Conclude with the same strength as in the introduction

Answered: 1 week ago

Question

7. Prepare an effective outline

Answered: 1 week ago