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Question: Eyrie Corp is a manufacturing company that produce festive ornaments. The company receives a job order 20201015 for 300 units of the ornaments. The
Question: Eyrie Corp is a manufacturing company that produce festive ornaments. The company receives a job order 20201015 for 300 units of the ornaments. The following information was available. (1) The production of ornaments required two materials which are Crystals and Lycra. The market price of Crystal and Lycra are RM24 per kg and RM165 per kg respectively. Each unit requires 12kg of Crystal and 500 gram of Lycra. (ii) The following information was recorded at the following department. Moulding Assembling Labelling department department department Budgeted machine hours 6,875 hours 4,870 hours 2,435 hours Budgeted labour hours 12,175 hours 15,530 hours 10,203 hours Actual machine hours 7,520 hours 4,880 hours 2,680 hours Actual labour hours 12,200 hours 15,800 hours 10,500 hours (ii) The budgeted overhead is RM243,500 at the ratio of 6:3:1 respectively for moulding, assembling and labelling department. (iv) (v) (vi) A special moulding machine was rented at RM5,200 for the job. Selling and distribution expenses are set at 10% of production cost while administrative expenses is set at 15% of prime cost. Labour hours for the job in each department are recorded at 2% of actual labour hours at the rate of RM3.50 per hour at all department. Machine hours are recorded at each department as follows: Moulding 245 hours Assembling : 180 hours Labelling : 220 hours Overhead are absorb based on labour hours for moulding department and machine hours for all other department Eyrie Corp target to earn 15% net profit margin for each units of omaments that is sold. (vii) (vii) Required: Prepare job cost sheet for order #Job No 20201015
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