Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you do it in excel format plaese You have been asked to suggest a method of deducing the full cost of various production orders

Can you do it in excel format plaese
image text in transcribed
You have been asked to suggest a method of deducing the full cost of various production orders of Patel Ltd. This method will be used as a basis for setting prices. The production orders vary greatly in size and nature from one to the next. The following information has been taken from the budget for the forthcoming financial year: The business has 2 departments: Machining and Assembly. The following information will help you to split the Overhead costs between the 2 departments: 80% of Power cost goes to Machining department. The Assembly department needed 8,000 of Maintenance and repairs. The Factory head and Iight and Cleaning materials is split evenly between the departments. The assembly department used 80,000 hours of Direct Labor during the year. Depreciation of factory building is split evenly while the Machinery depreciation goes ali to the Machining Department Indirect Labor is apportioned according to the Direct Labor proportions. All direct labour is paid the same hourly rate. Required: (a) Calculate two OH rates for the 2 departments. (b) Prepare full costings for Order No 101 using each of the rates calculated in (a) Tha chet chast for frrdar Nn int whows the followine

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

Management Reporting Und Behavioral Accounting Verhaltenswirkungen Des Berichtswesens Im Unternehmen

Authors: Andreas Taschner

2nd., 2nd. Auflage Aufl. 2019 Edition

3658234911, 978-3658234911

More Books

Students also viewed these Accounting questions

Question

4 How can you create a better online image for yourself?

Answered: 1 week ago