Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question (2 Points) KENT Ltd produces a range of products. Manufacturing is undertaken using one of two processes: the Alpha and the Omega Processes. All

image text in transcribed
image text in transcribed
Question (2 Points) KENT Ltd produces a range of products. Manufacturing is undertaken using one of two processes: the Alpha and the Omega Processes. All of the products are manufactured in batches. The current pricing policy has been to absorb all overheads using direct labour hours to obtain total cost. A recent detailed analysis has examined overhead cost; the results are: Analysis of overhead costs Cost per month () Monthly volume Alpha Process cost 192,000 960 hours Omega Process cost 89,600 2,560 hours Set-up cost 85,800 520 set-ups Handling charges 91,200 380 movements Other overheads 101,400 (see below) Total overhead costs 560,000 There are 2.000 direct labour hours available each month. Two of KENT's products are a JT101 and a GR27. JTi0ls are produced by the Alpha Process in a simple operation. GR27s are manufactured by the Omega Process. Both products are sold by the metre. Details of the two products are: JT101 GR27 Monthly volume 1.000 metres 500 metres Batch size 1.000 metres 50 metres Processing time per batch Alpha 100 hours Omega 25 hours Set-ups per batch 2 set-ups Handling charges per batch I movement 5 movements 1 set-up Malta 380 movements (see below) Black Professional R... Black Professional R.. on mg V.. Hananng charges YI,200 Other Overheads 101,400 Total overhead costs 560,000 There are 2.000 direct labour hours available cach month. Two of KENT's products are a JT101 and a GR27. JT101s are produced by the Alpha Process in a simple operation. GR27s are manufactured by the Omega Process. Both products are sold by the metre. Details of the two products are: JT101 GR27 Monthly volume 1,000 metres 500 metres Batch size 1.000 metres 50 metres Processing time per batch Alpha 100 hours Omega 25 hours Set-ups per batch 1 set-up 2 set-ups Handling charges per batch 1 movement 5 movements Materials per metre 16 15 Direct labour per metre (Direct cost) hour hour Direct labour is paid at 16 per hour. Q. What is the set-up cost per metre for JT101s 0.165 42.9 1 165

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

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

1292016922, 978-1292016924

Students also viewed these Accounting questions

Question

Describe Yaloms therapeutic factors for group psychotherapy.

Answered: 1 week ago