Budgeted information relating to two departments in Blair's Chairs Limited for the next period isas follows:ProductionDepartment overhead12£270,00018,000Directmaterial cost£Direct Direct Machinelabour cost labour hours hours£67,500 13,50036,000100,0002,700 45,00025,000 300Individual direct labour workers within each department earn differing rates of pay according totheir skills, grade and experience.What is the most appropriate production overhead absorption method for Department 1?A) $ per machine hourB) $ per direct labour hourC) Per cent of direct material costD) Per cent of direct labour costWhat is the most appropriate production overhead absorption method for Department 2?A) Per cent of direct material costB) $ per machine hourC) Per cent of direct labour costD) $ per direct labour hour

Department A is more dependent on machine hours and very less usage of labor. Hence machine hours…

Budgeted information relating to two departments in Blair's Chairs Limited for the next period is as follows: Production Direct Department overhead 1 2 Direct Direct material cost labour cost labour hours £ £ £ 270,000 18,000 67,500 36,000 13,500 100,000 Machine hours 2,700 45,000 25,000 300 Individual direct labour workers within each department earn differing rates of pay according to their skills, grade and experience. B) $ per machine hour C) Per cent of direct labour cost D) $ per direct labour hour What is the most appropriate production overhead absorption method for Department 1? A) $ per machine hour B) $ per direct labour hour C) Per cent of direct material cost D) Per cent of direct labour cost What is the most appropriate production overhead absorption method for Department 2? A) Per cent of direct material cost

Budgeted information relating to two departments in Blair's Chairs Limited for the next period is as follows: Production Direct Department overhead 1 2 Direct Direct material cost labour cost labour hours £ £ £ 270,000 18,000 67,500 36,000 13,500 100,000 Machine hours 2,700 45,000 25,000 300 Individual direct labour workers within each department earn differing rates of pay according to their skills, grade and experience. B) $ per machine hour C) Per cent of direct labour cost D) $ per direct labour hour What is the most appropriate production overhead absorption method for Department 1? A) $ per machine hour B) $ per direct labour hour C) Per cent of direct material cost D) Per cent of direct labour cost What is the most appropriate production overhead absorption method for Department 2? A) Per cent of direct material cost

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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