You have been asked to suggest a method of deducing the full cost of various...
60.1K
Verified Solution
Link Copied!
Question
Accounting
You have been asked to suggest a method of deducing the full cost of various production orders of Cheryl Ltd. This method wil 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 hours Machine hours Direct material 70,000 houns 75,000 hours 16,000 kg Manufacturing costs: Power Direct materials Machine maintenance and repairs Factory heat and light Lubricants and cleaning materials Direct labour Depreciation: factory buildings 40,000 200.000 38,000 4,000 6.000 700.000 130,000 402 000 machinery Indirect labour 1620.000 The business is not departmentali sed for accounting purposes All direct labour is paid the same hourty rate Required
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: Flex AI - Your personal assistant for all your inquiries!
