Hello, need help with two accounting problems:
1.
Pieman Product Ltd makes road trailers to the precise specications of individual customers. The followings are predicted to occur during the forthcoming years, which is about to start: Direct material cost 50. Direct labour cost 1E,0[l Direct labour time 16. hours Indirect labour cost 25. Depreciation of machine E Rent and rates 1. Heating. lighting and power 5.0El Indirect material 2.0 Dther indirect cost 1.0 Machine time 3,i} hours All direct labour is paid at the same hourly rate. A customer has asked the business to build a trailer for transporting a racing motorcycle to races. It is estimated that this will require materials and components that will cost 1.15}. It will take 253 direct labour hours to do the job. of wl'Iich 52] will involve the use of machinery. Required: Deduce a logical cost for the job. and explain the basis of dealing with overheads that propose. Production department: Service department: A E 0 D E Indirect tat-tour 15,000 0550 30,350 6.150 3350 Area (sq at} 10.000 5.000 0.500 1.500 1.000 Number of employees 200 00 120 20 30 Heelinery costs 90.000 00000 120,000 40.000 30000 Medias horas 10.000 1?.030 12.000 2.000 1.000 Direct labour hours 25.000 12.000 10.000 3.000 2.000 Overhead out: Tot-l cont Indirect labour 40,900 Depreciation of machineryI 30000 Heating and Ighng 51000 Factory admirisbnon 4,500 Machinery supervision 105,000 Rent and rates 13.000 Additional information on apportionment of overhead costs: 1. Indirect labour is ahead; alienated. 2. Depreciation is epporiioned based on medtinerymet. 3. merino is apportioned based on area. 4. Factory admin is apportioned based on employee numbers. 5. Machinery supervision is apportioned based on mash'ne hours. 0. Rent-hiss is apportioned based on area. Required: Prepare a statement shutting the overhead costs allocated to eat-:1 production department. Service department costs should be re-apportioned to production departments as follows: ii} Department D rst to the oiher four departments {0.0.0.E] on the basis oi diret: labour hours {ii} Depaonent E [including the shore reeoportioned from depemnent 0] to the other three deosmnents reset on the basis of maoh'ne inure