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

See similar textbooks

Similar questions

The cost baseline is calculated as: the sum of all work package cost estimates + management reserves O the sum of all work package cost estimates + contingency reserves the sum of all work package cost estimates + contingency reserves + management reserves. the sum of all work package cost estimates
Segment Reporting With respect to interim reporting, FASB addresses examples of costs that benefit more than one accounting period (i.e., month) and how these costs should be accounted for on interim reports. Please provide three examples of these types of costs, the requirement for reporting them, and also indicate which FASB rule governs the application of the process. Please use this link to access the FASB CodificationLinks to an external site..
cost accounting is divided over three-phase. briefly discuss each what are the four control accounts concerned primarily with cost determinants
Describe the key steps of resource assignment and cost assembly via eTakoff and Sage Estimating.
Define the term Annual operating cost:?
State the difference between Standard costing & Budgetary control. Give your analysis with 5 points differences?
Explain how the two-, three-, and four-variance overhead analyses are related.
For each of the following expenses, select the best allocation basis. A. Value of insured assets. B. Square feet of space occupied. C. Proportion of total purchase orders for each operating department. D. Number of employees in department. Maintenance department expenses of the operating departments. Payroll department expenses of all departments. Purchasing department expenses for the operating departments. Insurance expenses of all departments.
Management uses Cost Volume Profit (CPV) analysis as a planning process to predict the future volume of activity, costs incurred, sales made and profit received. Required: i. List and explain FIVE assumptions in C-V-P analysis.
A department’s conversion costs are equal to the ________ and assigned direct labor costs. Select answer from the options below A. sum of its allocated overhead costs B. difference between its materials costs C. sum of its materials costs D. difference between its allocated overhead costs
4.1 Determined the correct formula to calculate the predetermined overhead absorption rate (OAR). Budgeted total overhead divided by actual total number of units of absorption base Budgeted total overhead divided by budgeted total number of units of absorption base Actual total overhead divided by actual total number of units of absorption base Actual total overhead divided by budgeted total number of units of absorption base
List and describe the four components of the cost of qualityand provide examples of each.