A company manufactures small assemblies to order and has the following budgeted overheads for the year, based on normal activity levels. Department Budgeted Overheads Overhead Absorption Base Blanking Machining Welding Assembling 1,500 labour hours 7,500 22,500 9,000 5,000 2,500 machine hours 1,800 labour hours 1,000 labour hours Selling and Administrative Overheads are 20% of Factory Cost. An order for 250 assemblies type X 128 made as Batch 5931 incurred the following costs : Materials $ 5,702 Labour-128 hours Blanking Shop at $ 4.50/hour ; 452 hours Machining Shop at $ 5.0/hour ; 90 hours Welding Shop at $ 4.5/hour; 175 hours Assembly Shop at $ 3.6/hour. $ 525 was paid for the hire of special X-ray equipment for testing the welds. The time booking in the machine shop was 643 machine hours. Calculate the total cost of the batch, the unit cost and profit per assembly if the selling price was $ 100/assembly.

A company manufactures small assemblies to order and has the following budgeted overheads for the year, based on normal activity levels. Department Budgeted Overheads Overhead Absorption Base Blanking Machining Welding Assembling 1,500 labour hours 7,500 22,500 9,000 5,000 2,500 machine hours 1,800 labour hours 1,000 labour hours Selling and Administrative Overheads are 20% of Factory Cost. An order for 250 assemblies type X 128 made as Batch 5931 incurred the following costs : Materials $ 5,702 Labour-128 hours Blanking Shop at $ 4.50/hour ; 452 hours Machining Shop at $ 5.0/hour ; 90 hours Welding Shop at $ 4.5/hour; 175 hours Assembly Shop at $ 3.6/hour. $ 525 was paid for the hire of special X-ray equipment for testing the welds. The time booking in the machine shop was 643 machine hours. Calculate the total cost of the batch, the unit cost and profit per assembly if the selling price was $ 100/assembly.

Name: A company manufactures small assemblies to order and has the followin
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Description: A company manufactures small assemblies to order and has the following budgeted overheads for theyear, based on normal activity levels.Department Budgeted Overheads Overhead Absorption BaseBlankingMachiningWeldingAssembling1,500 labour hours7,50022,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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