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Category > Accounting Posted 22 Jun 2017 My Price 8.00

Bookdon plc manufactures three products, X, Y and Z, in two production departments

Bookdon plc manufactures three products, X, Y and Z, in two production departments: a machine shop and a fitting section; it also has two service departments: a canteen and a machine maintenance section. Shown below are next year’s planned production data and manufacturing costs for the business

All machining is carried out in the machine shop. It has been estimated that approximately 70% of the machine maintenance section’s costs are incurred servicing the machine shop and the remainder servicing the fitting section. Required:

(a) Calculate the following planned overhead absorption rates:

(i) A machine hour rate for the machine shop. (ii) A rate expressed as a percentage of direct wages for the fitting section.

(b) Calculate the planned full cost per unit of Product X

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Alpha Geek
(8)
Status NEW Posted 22 Jun 2017 11:06 AM My Price 8.00

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Attachments

file 1498131817-2204518_1_636336919854589524_cost-allocation.xlsx preview (296 words )
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