Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › materials purchases budget & total cost
- This topic has 3 replies, 2 voices, and was last updated 10 years ago by John Moffat.
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- August 9, 2014 at 8:58 am #188823
Dear Mr John.
Q1) Finished product :
Sales 7000 units, production units 7200 unitsMaterials:
usage per unit 3kg
opening stock 400kg, closing stock 500kgmaterials purchase budget for the months ? my answer :21700kg ???
Q2) A company operates a job costing system. job number #007 required $45 of direct materials and $30 of direct labour. Direct labour is paid at the rate $7.50/hrs. production overhead are absorbed at the rate of $12.50 per direct labour hrs and non-production overhead are absorbed at rate of 60% of prime cost.
The total cost of job #007 is $170 ??
Q3)Salary cost /hrs for senior $40
Salary cost /hrs for junior $25
Overhead absorption rate per hour applied to all hours $20
Organisation adds 40% to total cost to arrive at the final fee to charged client.
Assignment ‘Project Runway’ took 54hrs of a senior time and 110 hours of junior time.
What is the final fee to charged for ‘project runway’ My answer is : $11466.?Thanks
August 9, 2014 at 9:10 am #188829Q1: Your answer is correct 🙂
Q2: Correct again 🙂
Q3: Yes – correct as well 🙂
August 10, 2014 at 3:03 am #189068Thanks for your help 🙂
August 10, 2014 at 7:19 am #189095You are welcome 🙂
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