Question 7 a. DDD Ltd is a family company that specializes in the production of metallic gates. All jobs must go through its three production departments, that is Assembling. Welding and Spraying. Data for the year ended 4th* June 2015 is provided below: Budgeted Information Overhead cost Machine Hours Direct Labour Hours Assembling Welding Spraying Machine hours: Assembling 82000 535 425 425 5250 The following information relates to JOB B145 for Carl Direct materials: From stores Bought-in Direct labour: 380 hours @ GHS7/hr 550 hours @ GHS6.5/hr 1200 hours @ GHS6/hr Welding 106250 8200 GHS 28,500 20,600 Spraying 82,000 8500 Assembling Welding Spraying Trials and testing cost of GHS6,400 is incurred on each job. It is company policy to make a margin of 35% of the profit on each job. Required: i) Calculate an appropriate overhead absorption rate for each department for the year ended 30 June, ii) Determine the total costs, for Job B145. iii) Determine the selling price for a unit of Job B145

Question 7 a. DDD Ltd is a family company that specializes in the production of metallic gates. All jobs must go through its three production departments, that is Assembling. Welding and Spraying. Data for the year ended 4th* June 2015 is provided below: Budgeted Information Overhead cost Machine Hours Direct Labour Hours Assembling Welding Spraying Machine hours: Assembling 82000 535 425 425 5250 The following information relates to JOB B145 for Carl Direct materials: From stores Bought-in Direct labour: 380 hours @ GHS7/hr 550 hours @ GHS6.5/hr 1200 hours @ GHS6/hr Welding 106250 8200 GHS 28,500 20,600 Spraying 82,000 8500 Assembling Welding Spraying Trials and testing cost of GHS6,400 is incurred on each job. It is company policy to make a margin of 35% of the profit on each job. Required: i) Calculate an appropriate overhead absorption rate for each department for the year ended 30 June, ii) Determine the total costs, for Job B145. iii) Determine the selling price for a unit of Job B145

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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