Question 3 The following information has been obtained for Product R2 X that has been completedthroughoutagiven period Skilled labour 112 hours at 10 00 Unskilled labour 90hoursat7 50 Raw materials 1,110 units at 3 00 per unit Product R2 X goes through two processes mixing and refining Budgeted overheads andbudgeted activity for the two production departments the Mixing Department and the Refining Department are detailed below Overheads Plannedactivity Mixing Department 30,000 00 5,000 machine hours Refining Department 25,000 00 4,000 machine hours ProductR2 Xismadeinbatchesof1,500litres Required Calculate an over head absorption rate for the Mixing Department and the Refining Department using a suitable basis Calculate the total manufacturing cost per litre of Product R2 X, assuming that it required 200 machine hours in the Mixing Department and 300 machine hours in the Refining Department Assume that actual overheads at the end of the year amounted to 27,000 in theMixing Department and 36,000 in the Refining Department, while 4,000 machine hours were worked in the Mixing Department and 6,000 machine hours were worked in the Refining Department Calculate the amount of under over absorbed over head in each of production departments

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Question 3 The following information has been obtained for Product R2-X that has been completedthroughoutagiven period: Skilled labour 112 hours at 10.00 Unskilled labour 90hoursat7.50

Question 3

The following information has been obtained for Product R2-X that has been completedthroughoutagiven period:

Skilled labour	112 hours at 10.00
Unskilled labour	90hoursat7.50
Raw materials	1,110 units at 3.00 per unit

Product R2-X goes through two processes: mixing and refining. Budgeted overheads andbudgeted activity for the two production departments the Mixing Department and the Refining Department-are detailed below:

	Overheads	Plannedactivity
Mixing Department	30,000.00	5,000 machine hours
Refining Department	25,000.00	4,000 machine hours

ProductR2-Xismadeinbatchesof1,500litres.

Required:

Calculate an over head absorption rate for the Mixing Department and the Refining Department using a suitable basis.

Calculate the total manufacturing cost per litre of Product R2-X, assuming that it required 200 machine hours in the Mixing Department and 300 machine hours in the Refining Department.

Assume that actual overheads at the end of the year amounted to 27,000 in theMixing Department and 36,000 in the Refining Department, while 4,000 machine hours were worked in the Mixing Department and 6,000 machine hours were worked in the Refining Department. Calculate the amount of under-/over-absorbed over head in each of production departments.