Section B Question Tool Dunstan Ltd manufactures tents and sleeping bags in the separate production departments. The principal manufacturing processer consist of cutting material in the putem cutting room and sewing the material in either the tent or the sleeping bag departments. For the year to 31 July cost contre expenses and other relevant information are budgeted as follow Cutting Tante Sleeping Raw Maintenance (GHS) IGHS) bugs material (GHS) IGHES (GHS) stores (GHS) Indirect wages 132200 19500 30100 41200 45000 Consumable materiale 35900 5100 *100 2100 24200 Plant depreciation MONDO 31300 17500 24600 2300 S000 Power 31700 Heat and light 1300 Rent and makes 14600 Building insurance 13500 Floor areas 27500 WOOD 7000 1500 1000 Estimated power usage 100 7 6 Direct laboureurs) 112000 500D 57000 Machine usage hours) 87000 10000 45000 Value ofw materiales 100 70 15 15 2000 a) Prepare in columnar form a statement calculating the head absorption rates for cach direct labour bour for each of the three production units. You should we buses of apporticament and absorption which you consider most appropriate and the buses should be clearly indicated in your staticment b) Determine the price to be quoted for a customer ordet arag the information below Direct material 2500 Direct labour Cutting Shows LOGHS per hour Tents 10 hours ROGHS per hour Sleeping bagi 12 hours ROGHS per hour The company wants to make a profit of 30ce the total product cost c) At the end of the period, actual labour housekee as follows Cutting room 7000 Tents Sous Sleeping bags hours The total actual overhead cost incurred was 360.COS. Determine the amount of over under absorption of overheads. How will then be red in the statement of profit or loss of Dunstan lid Question 2 Compare and contrast absorption and marginal conting Section B Question Tool Dunstan Ltd manufactures tents and sleeping bags in the separate production departments. The principal manufacturing processer consist of cutting material in the putem cutting room and sewing the material in either the tent or the sleeping bag departments. For the year to 31 July cost contre expenses and other relevant information are budgeted as follow Cutting Tante Sleeping Raw Maintenance (GHS) IGHS) bugs material (GHS) IGHES (GHS) stores (GHS) Indirect wages 132200 19500 30100 41200 45000 Consumable materiale 35900 5100 *100 2100 24200 Plant depreciation MONDO 31300 17500 24600 2300 S000 Power 31700 Heat and light 1300 Rent and makes 14600 Building insurance 13500 Floor areas 27500 WOOD 7000 1500 1000 Estimated power usage 100 7 6 Direct laboureurs) 112000 500D 57000 Machine usage hours) 87000 10000 45000 Value ofw materiales 100 70 15 15 2000 a) Prepare in columnar form a statement calculating the head absorption rates for cach direct labour bour for each of the three production units. You should we buses of apporticament and absorption which you consider most appropriate and the buses should be clearly indicated in your staticment b) Determine the price to be quoted for a customer ordet arag the information below Direct material 2500 Direct labour Cutting Shows LOGHS per hour Tents 10 hours ROGHS per hour Sleeping bagi 12 hours ROGHS per hour The company wants to make a profit of 30ce the total product cost c) At the end of the period, actual labour housekee as follows Cutting room 7000 Tents Sous Sleeping bags hours The total actual overhead cost incurred was 360.COS. Determine the amount of over under absorption of overheads. How will then be red in the statement of profit or loss of Dunstan lid Question 2 Compare and contrast absorption and marginal conting
