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Please answer part C Under a contract with the provincial government, Kingbird Ltd. analyzes the chemical and bacterial composition of well water in various municipalities
Please answer part C
Under a contract with the provincial government, Kingbird Ltd. analyzes the chemical and bacterial composition of well water in various municipalities in the interior of British Columbia. The contract price is $25.15 per test performed. The normal volume is 10,000 tests per month. Each test requires two testing kits, which have a standard price of $3.75 each. Direct labour to perform the test is 10 minutes at $22.80 per hour. At normal volume, the overhead costs are as follows: Overhead is allocated based on direct labour hours. During May 2022,8,100 tests were performed. The records show the following actual costs and production data: Test kits are kept in inventory at standard cost. At the end of May, no tests were in process Prepare a flexible overhead budget based on 80% of the normal volume. (Rnund enct nor 'unit in - tecimal places eg. 5.25.) Prepare a standard cost card for a water test. (Enter direct labour quantity in fraction, es. 1/5. Round other answers to 2 decimal places, es. 15.25.) 1022 . answers Step by Step Solution
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