Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you please answer this question? Question 2, Part 1 Azure has a job order and the following data have been recorded on its job

image text in transcribed

Can you please answer this question?

Question 2, Part 1 Azure has a job order and the following data have been recorded on its job cost sheet: Direct material Direct labour hours Direct labour wage rate Machine hours Number of units completed $50,000 1,000 $25 750 hours 800 The company applies manufacturing overhead on the basis of machine hours and the predetermined overhead rate is $20 per machine hour. Management is now considering whether this job order is profitable or not and how does this job order fare compared to the industry benchmark. Required a) Compute the unit product cost that would appear on the job cost sheet for this job. (2 marks) b) Using a mark-up percentage of 20% of the full product cost, how much profit/loss would this job make? (2 marks) c) Considering the industry benchmark for manufacturing overhead for similar jobs is 50% of direct labour, identify whether this job has a manufacturing overhead lower or higher than a similar job using the industry benchmark. Briefly explain what could cause a difference. (6 marks)

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_2

Step: 3

blur-text-image_3

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

Contemporary Auditing

Authors: Michael C. Knapp

8th edition

978-0538466790, 538466790, 978-1285066608

More Books

Students also viewed these Accounting questions

Question

Describe alternative training and development delivery systems.

Answered: 1 week ago

Question

Summarize the learning organization idea as a strategic mind-set.

Answered: 1 week ago