Martha wants to work out the factory production cost of a manufacturing job, called AC45. The job consumed 2,600 of materials, incurred 28 hours of direct labour and used 42 machine hours in May 20X1.

The relevant total production data for the factory during May 20X1 were as follows.

Direct wages(). 64,000

Budgeted overheads chargeable() 44,800

Direct labour hours worked 12,800

Machine hours operated. 6,000

Required:

Calculate to the nearest the total production cost of job AC45 if overheads are absorbed on the basis of labour hours.

(d) (d)

Le Clerc is a business that manufactures exclusive scarves. The budgeted selling price is 12 and the budgeted variable cost is 6. The budgeted fixed cost for the relevant accounting period is 13,000.

The actual sales were 15% more than the budgeted amount of 8,400. The only other relevant difference between the budget and the actual accounting figures was that the actual selling price fell by 25% from the budgeted price.

Required:

Calculate the actual profit made in the relevant accounting period.

Thanks,