Question
QUESTION TWO Poshey enterprise had the following predetermined overhead rates for its three departments which produces delicious package stew for the local market targeting mainly
QUESTION TWO Poshey enterprise had the following predetermined overhead rates for its three departments which produces delicious package stew for the local market targeting mainly students on tertiary institutions, bachelors, and spinsters. The predetermined rates are as follows:
Kitchen - 15% of direct labour cost
Packaging - GHc 15.00 per machine hour
Dispatch - GHc 10.00 per direct labour hour
The cost sheet for order number 007 is stated below:
Kitchen Packaging Dispatch
Direct Materials (GHc) 25,000 10,000 2,000
Direct Labour: 200hrs@GHc35 80hrs@GHc30 40hrs@GHc25
Machine hours - 160 -
You are required to compute the price quoted for order number 007 if Poshey Enterprise desire profit on sales at 25%
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