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TUTORIAL CHAPTER 4 1) Up-Close Apparel manufactures specialty lines of women's apparel. During February 2021, the company worked on 3 special orders which are AX-1,
TUTORIAL CHAPTER 4 1) Up-Close Apparel manufactures specialty lines of women's apparel. During February 2021, the company worked on 3 special orders which are AX-1, AX-5 and BF-7. Cost and production data for each order are shown Direct materials Job AX-1 Job AX-5 Job BF-7 (meter) Fabrica 430 meter 520 meter 705 meter Fabric Z 570 meter 610 meter 672 meter Fabric YB 290 meter 385 meter 600 meter Fabric Q cost RM25 per meter, Fabric Z cost RM20 per meter and Fabric YB cost RM18 per meter. Direct labour consists of garment maker, layout worker and packaging worker. Garment maker and layout worker are skilled workers while packaging worker are unskilled workers. The skilled workers are paid RM 10 per hour and unskilled workers are paid RM 6 per hour. Direct labour hours Garment maker Layout Packaging Job AX-1 890 hours 645 hours 660 hours Job AX-5 1,040 hours 743 hours 820 hours Job BF-7 1,620 hours 921 hours 1,015 hours Additional information: 1. Production overhead are 120% of direct labour cost 2. Selling and distribution overheads are charged to the three jobs based on 3% of the total production cost 3. Administration overheads are charged to the three jobs based on 4% of the total production cost 4. During the month, 700 units of AX-1,775 units of AX-5 and 1,482 units of BF-7 were produced. Required: (a) Compute the total cost associated with each job. (note: use two decimal point) (b) Compute the product cost per unit for each job. (note: use two decimal point) (c) Calculate the selling price per unit for each job if the profit is to be maintained at 10% on cost
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