Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. you have been asked to suggest a method of deducin

You have been asked to suggest a method of deducing the full cost of various...

50.1K

Verified Solution

Question

Accounting

You have been asked to suggest a method of deducing the full cost of various production orders of Basil Ltd. This method will be used as a basis for setting prices. The production orders vary greatly in size and nature from one to the next.The following information has been taken from the budget for the forthcoming financial year:Direct labour 400,000Direct materials 100,000Overheads450,000Direct materials10,000 kgDirect labour hours50,000 hoursMachine hours45,000 hoursThe business is not departmentalised for accounting purposes.All direct labour is paid the same hourly rate. Basil Ltd has currently receiveda new orderwhich has the following costs:Direct materials450 kgDirect labour hours2,000 hoursMachine hours500 hoursRequired:(a) Prepare full costingsfor new order using the following methods allocating total overheads:-overhead rate based on labour hour basis-overhead rate based on machine hour basis(b)State briefly which of the two bases of overheads you prefer and why.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Explain the reason that the resting potential for neurons is around -70mV. Be sure to include...

Medical Sciences
Q

Research is an integral part of all professional fields. Designing a research study can be a...

Basic Math
Q

Introduction to international finance. Why would one select this concept of International finance for further examination? Why is...

Finance
Q

Write the equation of a sine function that has the following characteristics.Amplitude: 9 Period: 9?...

Basic Math
Q

For h (x)=-3x+2x-4/x2 +4(a) Identify the horizontal asymptotes (if any).(b) If the graph of the...

Basic Math
Q

The polynomial of degree 5 P x has leading coefficient 1 has roots of multiplicity...

Algebra
Q

Solomon Corporation is a manufacturing company that makes small electric motors it sells for $55...

Accounting
Q

Please Help. 7. Answer the following questions: a. What...

Accounting
Q

Leewin Brokerage enters into a lease agreement with Bumble Motors to lease an automobile with...

Accounting
Q

Discuss how the bond premium could be disposed

Accounting
Q

In 100 - 150 words please explain, Why would businesses choose to combine? Identify a...

Accounting
Q

Applying Factory Overhead Salinger Company estimates that total factory overhead costs will be $108,000 for...

Accounting