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QUESTION ONE. ( A ) Joy Company makes one product, the J . Two types of labour are involved in the preparation of a J
QUESTION ONE.
AJoy Company makes one product, the J Two types of labour are involved in the
preparation of a J skilled and semiskilled. Skilled labour is paid K per hour and
semiskilled K per hour. Eight skilled labour hours and four semiskilled labour
hours are needed to produce a J A J is made up of three different direct materials.
Seven kilograms of direct material A four litres of direct material B and three metres
of direct material C are needed. Direct material A costs K per kilogram, direct
material B K per litre and direct material C K per metre. Variable production
overheads are incurred at Joy Company at the rate of K per skilled direct labour
hour. A system of absorption costing is in operation at Joy Company. The basis of
absorption is skilled direct labour hours. For the forthcoming accounting period,
budgeted fixed production overheads are K and budgeted production of the
is units. Administration, selling and distribution overheads are added to
products at the rate of K per unit. A markup of is made on the J based on
total cost per unit that is total of production and non production costs
Required
Using the above information prepare the standard cost card below for the J Marks
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