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You can refer to question 2 from tutorial 2 to answer this question. Flashfash Ltd is considering buying a new cutting machine that will reduce
You can refer to question 2 from tutorial 2 to answer this question. Flashfash Ltd is considering buying a new cutting machine that will reduce the time in the cutting department by 30%. The rate of pay for cutters will increase by $4 per hour to $34 per hour if the new machine is purchased. The new cutting process will have an effect on the assemblers, increasing their time by 10%. There will be no change to the laundry department. Quarterly production for the three months ended 31 March is expected to be 63000 pairs of jeans. Rework the budget for direct labour hours and cost, taking the new information into account for the quarter. 3. 4. Waikiki & Co. has estimated its activities for the coming year as follows: Total direct labour hours January 4000; February 5000; March 3000 Annual total direct labour hours- 45000 hours Total fixed overhead costs - January $10000; February $15000; March $9000 Annual total fixed overhead costs - $126000 Annual total variable overhead costs - $2.00 per direct labour hours Waikiki & Co. needs to prepare a factory overhead budget for the quarter ending 31 March, showing fixed and variable overhead separately, factory overhead applied on the basis of direct labour hours, and overhead under-or over-applied each month
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