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Need it now pls! BAT Manufacturers produce furniture. They operate on a normal costing system and allocate manufacturing overheads based on labour hours. Actual Manufacturing
Need it now pls!
BAT Manufacturers produce furniture. They operate on a normal costing system and allocate manufacturing overheads based on labour hours. Actual Manufacturing Overheads for last year (2019) were e 192,000 and there was an expected increase for the current year (2020) of 10%. Budgeted labour hours for the current year is 4.000 labour hours per month. 200,000 They have provided you with the following information: ACTUAL data for the end of the year October 31rst 2020: Purchases - Direct materials Labour hours of workers building the furniture are 49,000 hours and labour is paid at 5 per labour hour. Rent for the Factory Canteen cost: 70% is for factory workers and 30% for sales personnel. Depreciation: 80% is for factory machines and 20% is for office machines Other manufacturing overheads Production manager's salary Accountant's salary Other selling and administration expenses Sales 80,000 30.000 50,000 45.000 24,000 36.000 55.000 1.500.000 ate Windo 2019 2020 Inventories at year end: E E Direct Materials 10,000 5,000 Work in Process 30,000 20.000 Finished Goods 15.000 25,000 Required: a) Prepare the Statement of Goods Manufactured for the year ending October 31st 2020, (40%) b) Prepare the Income Statement for the for the year ending October 31rst 2020. (40%) c) Compute the Manufacturing Overhead variance and state whether over or under applied. (5%) d) What would be the impact on the income statement of a manufacturing company if it reported the total manufacturing costs instead of the Cost of Goods Manufactured. (15%) Briefly explain what exactly would happen having done so Step by Step Solution
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