SUBJECT NAME IS COST ACCOUNTING.

ANSWER THE FOLLOWING QUESTION CORRECTLY.

Omega Company manufactures a single product. They have two production and two service departments. The following information is provided.

Production department Service department

Machining Assembly Maintenance Canteen

Overheads $143,500 $154,700 $165,800 $176,900

Direct Machine hours 18,845 14,050 0 0

Direct Labor hours 6,065 20,350 0 0

The service department overhead is apportioned to the production department on following basis.

Machining Assembly Canteen

Maintenance 60% 30% 10%

Canteen 40% 60%

Required:

Calculate per unit cost for the single product if material cost is 3 meters @ $4 per meter and labor is 7 hours @$8 per hour. For machining department overhead is 3 hours and for assembly department it is 4 hours.