An order for a metal fabrication requires production processes from two departments as follows: 1. Laser cutting 2. Folding/bending and welding The laser cutting is costed on a machine hour rate basis and has already been determined to be £2500 for this order. Determine the total cost of this fabrication given the following information The bending and welding department requires 30 hours of labour costed at £15 per hour The folding/bending and welding department has an annual overhead of £216k to absorb The total annual labour hours for this department are 3600 hours (overheads are absorbed on this basis) The direct cost of materials for this fabrication is £800. What is the total production cost of this order?

An order for a metal fabrication requires production processes from two departments as follows: 1. Laser cutting 2. Folding/bending and welding The laser cutting is costed on a machine hour rate basis and has already been determined to be £2500 for this order. Determine the total cost of this fabrication given the following information The bending and welding department requires 30 hours of labour costed at £15 per hour The folding/bending and welding department has an annual overhead of £216k to absorb The total annual labour hours for this department are 3600 hours (overheads are absorbed on this basis) The direct cost of materials for this fabrication is £800. What is the total production cost of this order?

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Description: An order for a metal fabrication requires production processes from two departments as follows:1. Laser cutting2. Folding/bending and weldingThe laser cutting is costed on a machine hour rate basis and has already been determined to be £2500 for thi

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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