Homework Help is Here – Start Your Trial Now!
Business
Accounting
product cost

product cost

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%
- You are fulfilling an order for 10 cabinets at £400 per unit. This involves work in 3 cost centres Your company has established the following data: Machining machine OAR = £18 per m/c hr Assembly - labour OAR = £11 per hour Finishing-labour OAR = £12 per hour Total direct material cost = £300 Total labour 60 hours machining at 70 hours assembly at 60 hours finishing at £5.50/hour £4.00/hour £6.50/hour Machine time = 40 hours OAR for general overheads is 10% of total product cost G i Using batch costing methods calculate the unit cost (to the nearest pound) £386 Notes A BO 9 " de D 23:24 30/12/2022
Transcribed Image Text:- You are fulfilling an order for 10 cabinets at £400 per unit. This involves work in 3 cost centres Your company has established the following data: Machining machine OAR = £18 per m/c hr Assembly - labour OAR = £11 per hour Finishing-labour OAR = £12 per hour Total direct material cost = £300 Total labour 60 hours machining at 70 hours assembly at 60 hours finishing at £5.50/hour £4.00/hour £6.50/hour Machine time = 40 hours OAR for general overheads is 10% of total product cost G i Using batch costing methods calculate the unit cost (to the nearest pound) £386 Notes A BO 9 " de D 23:24 30/12/2022
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost classification
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS