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Q.1. Sander Metal Products has three departments, Welding, Painting and Packaging. Welding is done manually, Painting and packaging are highly automated departments. The firm adopts

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Q.1. Sander Metal Products has three departments, Welding, Painting and Packaging. Welding is done manually, Painting and packaging are highly automated departments. The firm adopts job order costing method. The manufacturing overhead is an indirect expense. In welding department it is allocated on the basis of labour hours. In painting and packaging department manufacturing . overhead applied on the basis of machine hours. The yearly estimated details for all the departments are given below: Welding() Painting() Packaging() Budgeted Material cost 100,50,000 15,00,000 15,56,000 Budgeted Direct Labour cost 72,00,500 6,00,000 5,75,000 Budgeted Manufacturing Overheads 15,00,000 30,00,000 24,00,000 Budgeted labour hours 1,20,000 10,000 9,350 Budgeted Machine hours 6,000 75,000 It got an order from an automobile company for making 1000 units of a particular part. Sander Mtal estimated the details for the job as below. 15,004 Direct Material Direct Labour cost Budgeted labour hours Budgeted Machine hours You are required to: Welding() 7,50,000 5,75,000 8,000 300 Painting(6) 1.20,000 50,000 500 3,600 Packaging) 2,40,000 45,600 500 700 a) find out the POHR for all the departments b) find out the cost of the job and cost per unit indah

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