Question
BENMAYER Enterprise produces liquid and compound fertilizers. The following is the manufacturing costs related to 1,000 bottles of liquid fertilizers and 150 packs of compound
BENMAYER Enterprise produces liquid and compound fertilizers. The following is the manufacturing costs related to 1,000 bottles of liquid fertilizers and 150 packs of compound fertilizers produced during the month of June 2019.
Types of cost | Liquid fertilizers | Compound fertilizers |
Direct materials | RM50,000 | RM60,000 |
Direct labour | RM10,000 | RM5,000 |
Direct labour | 1,000 hours | 500 hours |
The estimated monthly overhead cost is RM30,000 and the business uses plantwide overhead rate based on direct labour hours in allocating the overhead cost.
Required:
(a) Calculate the predetermined plantwide overhead rate.
(b) Calculate the applied overhead costs of each product.
(c) Calculate the total manufacturing cost of each product.
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