Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Menai Ltd. manufactures a number of different products and has recently employed Sally Rushton as its management accountant. Sally is currently looking at the various

Menai Ltd. manufactures a number of different products and has recently employed Sally Rushton as its management accountant. Sally is currently looking at the various products and processes within Menai Ltd. to increase profitability, as a measure to try to avoid redundancies. Sally has identified 4 areas that she would like to look at first and she has asked you to provide her with the following information.

Menai Ltd. manufacture the Picola which it sells for 50 a unit. The direct material cost is 15 per unit. Other factory costs are 50,000 each month. The bottleneck factor of the production is the assembly of the unit, which is a labour-intensive process. There are 12,500 labour hours available in assembly each month. Each unit of the Picola takes 4 hours to assemble.

Calculate the Picola's budgeted rate per factory hour and through put ratio for the month

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

Financial Accounting Theory And Analysis Text And Cases

Authors: Richard G Schroeder, Myrtle W Clark, Jack M Cathey

13th Edition

1119577772, 9781119577775

More Books

Students also viewed these Accounting questions

Question

6. How can a message directly influence the interpreter?

Answered: 1 week ago