Job #3006, which was an order from Sport Equipment, was completed during the period. Additional relevant data relating to the job were as follows: Direct materials: CODE 1 RM600 CODE 2 RM410 CODE 3 RM190 Direct wages: Assembly Finishing Inspection 15 hours at RM20 per hour 40 hours at RM10 per hour 50 hours at RM15 per hour Assembly Finishing Inspection 5 hours Machine hours: 20 hours 10 hours The branding patent was used in making Job # 3006 at a cost of RM600. Based on normal activity, the company provides information on budgeted overhead as follows: Departments Budgeted Overhead Budgeted Machine hours Budgeted labour hours Assembly Finishing Inspection RM24.000 4,800 2,400 RM36,000 RM15,000 3,600 1,000 2,400 1,800 It is recommended that the basis of absorption be as follows: - Assembly Inspection Finishing machine hour direct labour hour direct labour hour Administration, selling and distribution expenses are charged to the job at 10% of factory costs. Profit margin is to be maintained at 25% of selling price.

Job #3006, which was an order from Sport Equipment, was completed during the period. Additional relevant data relating to the job were as follows: Direct materials: CODE 1 RM600 CODE 2 RM410 CODE 3 RM190 Direct wages: Assembly Finishing Inspection 15 hours at RM20 per hour 40 hours at RM10 per hour 50 hours at RM15 per hour Assembly Finishing Inspection 5 hours Machine hours: 20 hours 10 hours The branding patent was used in making Job # 3006 at a cost of RM600. Based on normal activity, the company provides information on budgeted overhead as follows: Departments Budgeted Overhead Budgeted Machine hours Budgeted labour hours Assembly Finishing Inspection RM24.000 4,800 2,400 RM36,000 RM15,000 3,600 1,000 2,400 1,800 It is recommended that the basis of absorption be as follows: - Assembly Inspection Finishing machine hour direct labour hour direct labour hour Administration, selling and distribution expenses are charged to the job at 10% of factory costs. Profit margin is to be maintained at 25% of selling price.

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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