SecuriPrint Ltd produces pre-printed cheques for customers to use in automated account payable departments. The cheques include personalised customer details. A new customer has ordered a batch of 3,000 cheques. The following data illustrate SecuriPrint’s cost for a typical batch of 1,000 cheques:Variable materialsVariable wagesMachine set up (fixed per batch *) Design and artwork (fixed per batch *)£ 72.00 24.007.20 36.00 139.20* The design and machine set up costs are fixed per batch regardless of the batch size.SecuriPrint absorbs production overhead at a rate of 10% of variable wages cost. A further 5% is added to the total production cost of each batch to allow for selling, distribution and administration overhead.SecuriPrint requires a profit margin of 40% of sales value. The selling price for a batch of 3,000 cheques should be:a) £743.40b) £592.20c) £579.60d) £497.45 UNIVERSITY22. SecuriPrint Ltd produces pre-printed cheques for customers to use inautomated account payable departments. The cheques include personalisedcustomer details. A new customer has ordered a batch of 3,000 cheques. Thefollowing data illustrate SecuriPrint's cost for a typical batch of 1,000cheques:Variable materials72.00Variable wagesMachine set up (fixed per batch *)Design and artwork (fixed per batch *)24.007.2036.00139.20The design and machine set up costs are fixed per batch regardless of the*batch size.SecuriPrint absorbs production overhead at a rate of 10% of variable wagescost. A further 5% is added to the total production cost of each batch to allowfor selling, distribution and administration overhead.SecuriPrint requires a profit margin of 40% of sales value.The selling price for a batch of 3,000 cheques should be:a)£743.40£592.20£579.60£497.45c)d)

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Answered: SecuriPrint Ltd produces pre-printed…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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SecuriPrint Ltd produces pre-printed cheques for customers to use in automated account payable departments. The cheques include personalised customer details. A new customer has ordered a batch of 3,000 cheques. The following data illustrate SecuriPrint’s cost for a typical batch of 1,000 cheques:

Variable materials
Variable wages
Machine set up (fixed per batch *) Design and artwork (fixed per batch *)

£ 72.00 24.00

7.20 36.00 139.20

* The design and machine set up costs are fixed per batch regardless of the batch size.

SecuriPrint absorbs production overhead at a rate of 10% of variable wages cost. A further 5% is added to the total production cost of each batch to allow for selling, distribution and administration overhead.

SecuriPrint requires a profit margin of 40% of sales value. The selling price for a batch of 3,000 cheques should be:

a) £743.40
b) £592.20
c) £579.60
d) £497.45

UNIVERSITY
22. SecuriPrint Ltd produces pre-printed cheques for customers to use in
automated account payable departments. The cheques include personalised
customer details. A new customer has ordered a batch of 3,000 cheques. The
following data illustrate SecuriPrint's cost for a typical batch of 1,000
cheques:
Variable materials
72.00
Variable wages
Machine set up (fixed per batch *)
Design and artwork (fixed per batch *)
24.00
7.20
36.00
139.20
The design and machine set up costs are fixed per batch regardless of the
*
batch size.
SecuriPrint absorbs production overhead at a rate of 10% of variable wages
cost. A further 5% is added to the total production cost of each batch to allow
for selling, distribution and administration overhead.
SecuriPrint requires a profit margin of 40% of sales value.
The selling price for a batch of 3,000 cheques should be:
a)
£743.40
£592.20
£579.60
£497.45
c)
d)

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