QUESTION 3Afiza Group manufactures customized equipment for local market. The data forthe period were as follows:Budgeted overheadActual direct labour hoursBudgeted direct labourhoursDirect material:Direct labour:ABActual machine hours6,200 hours4,700 hoursBudgeted machine hours'5,700 hours5,300 hoursAn order is received from Encik Fahim to manufacture an equipment for hispersonal use. The data related to the costs of the equipment were asfollows:MachiningFinishingMachiningdepartmentRM50,000Hire of special machineAdministrative expensesMachine hours:5,000 hours5,400 hoursFinishingdepartmentRM65,000RM 1,500RM2,1006,000 hours5,800 hours500 hours @ RM2.50 per hour450 hours @ RM3.20 per hourRM1,20015% of factory costsMachiningFinishing321 hours670 hoursProfit25% of total costOverhead absorption is based on machine hour for the Machiningdepartment and direct labour hour for Finishing department.Required:a) Prepare a Job Cost Sheet showing the prime cost, total costand selling price for the equipment.

A job cost sheet reflects the amount of costs incurred on a particular job. This job cost sheet is…

Answered: Required: a) Prepare a Job Cost Sheet…

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Accounting

Required: a) Prepare a Job Cost Sheet showing the prime cost, total cost and selling price for the equipment.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

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