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materials purchases budget & total cost

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.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 9, 2014 at 8:58 am #188823
    superwomen
    Participant
    • Topics: 16
    • Replies: 20
    • ☆

    Dear Mr John.

    Q1) Finished product :
    Sales 7000 units, production units 7200 units

    Materials:
    usage per unit 3kg
    opening stock 400kg, closing stock 500kg

    materials 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 #188829
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    Q1: Your answer is correct 🙂

    Q2: Correct again 🙂

    Q3: Yes – correct as well 🙂

    August 10, 2014 at 3:03 am #189068
    superwomen
    Participant
    • Topics: 16
    • Replies: 20
    • ☆

    Thanks for your help 🙂

    August 10, 2014 at 7:19 am #189095
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
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