A Shoes manufacturing business produces quality customized footwear to client's orders. The units were manufactured as Job #240. It has three production departments A, B and C whose overhead absorption rates are as follows: $190 per labour hour $156 per labour hour C A В $168 per labour hour Direct production costs incurred are: $5000 40 hours @ $90.00 per hour 20 hours @ $70.00 per hour 10 hours @ $50.00 per hour Direct Materials Dept A Dept B Dept C Labour: General administrative expense is 25% of total cost. Profit is to be calculated at 20% mark-up. Required to: A. Calculate the selling price for job #240 В. State ONE (1) advantage and ONE (1) disadvantage of using the ABC approach. С. Outline the FOUR (4) stages of the ABC process
A Shoes manufacturing business produces quality customized footwear to client's orders. The units were manufactured as Job #240. It has three production departments A, B and C whose overhead absorption rates are as follows: $190 per labour hour $156 per labour hour C A В $168 per labour hour Direct production costs incurred are: $5000 40 hours @ $90.00 per hour 20 hours @ $70.00 per hour 10 hours @ $50.00 per hour Direct Materials Dept A Dept B Dept C Labour: General administrative expense is 25% of total cost. Profit is to be calculated at 20% mark-up. Required to: A. Calculate the selling price for job #240 В. State ONE (1) advantage and ONE (1) disadvantage of using the ABC approach. С. Outline the FOUR (4) stages of the ABC process
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A Shoes manufacturing business produces quality customized footwear to client's orders. The
units were manufactured as Job #240. It has three production departments A, B and C whose
overhead absorption rates are as follows:
$190 per labour hour
$156 per labour hour
C
A
В
$168 per labour hour
Direct production costs incurred are:
Direct Materials
$5000
Dept A
Dept B
Dept C
40 hours @ $90.00 per hour
20 hours @ $70.00 per hour
Labour:
10 hours @ $50.00 per hour
General administrative expense is 25% of total cost. Profit is to be calculated at 20% mark-up.
Required to:
А.
Calculate the selling price for job #240
В.
State ONE (1) advantage and ONE (1) disadvantage of using the ABC approach.
С.
Outline the FOUR (4) stages of the ABC process
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