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Question DKM Leicester Limited manufactures Student metal beds in three production departments in their Leicester production hub: The departments are Manufacturing, Finishing, and Packaging. DKM

Question DKM Leicester Limited manufactures Student metal beds in three production departments in their Leicester production hub: The departments are Manufacturing, Finishing, and Packaging. DKM Leicester Limited also have three service departments, namely: Quality Control, Stores and Maintenance. The company uses an absorption costing system to analyse product costs, and you have been supplied with the following information in relation to the production departments as indicated in Table 1 below:

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(B) DKM Leicester Limited manufactures Student metal beds in three production departments in their Leicester production hub: The departments are Manufacturing, Finishing, and Packaging. DKM Leicester Limited also have three service departments, namely: Quality Control, Stores and Maintenance. The company uses an absorption costing system to analyse product costs, and you have been supplied with the following information in relation to the production departments as indicated in Table 1 below: Table 1 Base Number of employees Machinery value (s) Factory area (square metres) Factory volume (cubic metres) Water usage (litres) Machine hours Manufacturing 20 100,000 218 26,000 15,000 95,000 Finishing 16 75,000 260 44,000 12,000 56,000 Packaging 17 60,000 290 40,000 12,000 26,000 Total 53 235,000 768 110,000 39,000 177,000 (B) DKM Leicester Limited manufactures Student metal beds in three production departments in their Leicester production hub: The departments are Manufacturing, Finishing, and Packaging. DKM Leicester Limited also have three service departments, namely: Quality Control, Stores and Maintenance. The company uses an absorption costing system to analyse product costs, and you have been supplied with the following information in relation to the production departments as indicated in Table 1 below: Table 1 Base Number of employees Machinery value (s) Factory area (square metres) Factory volume (cubic metres) Water usage (litres) Machine hours Manufacturing 20 100,000 218 26,000 15,000 95,000 Finishing 16 75,000 260 44,000 12,000 56,000 Packaging 17 60,000 290 40,000 12,000 26,000 Total 53 235,000 768 110,000 39,000 177,000

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