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
Ask the Tutor ACCA MA
materials purchases budget & total cost
Q1: Your answer is correct :-)
Q2: Correct again :-)
Q3: Yes - correct as well :-)
Thanks for your help :)
You are welcome :-)
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