# Essay on HND Project

7435 Words30 Pages
CONTENTS PAGE PROCEDURES The main point of research was to make an accurate decision for buying or hire purchase the CNC Laser machine. This was dependent on replies from the companies on requesting the quotes, but unfortunately no email was received. Below is attached the confirmation of sending one of the emails. CTR Lasers Thank you Hanna Jurkowska for your contacting us: 04/04/2014 04:04:04 pm Dear Hanna Jurkowska , Thank you for your feedback. We will contact you shortly. Your email was: haniajurk@gmail.com Thank you CTR Lasers In the research has been also involved: reading numbers of books, as much as, various numbers of sources gained from the internet. This helped in…show more content…
The cost pool is divided by the number of the cost driver takes place, and that will give an overhead rate per cost driver and the overheads are allocated to the different products from the cost pool, depends on their particular usage of the cost driver. This approach is more informative and accurate than those based on a less detailed analysis of overheads and is very useful to the companies which have an overheads a very large part of the total cost. In this project for each cost pool I have chosen the following cost drivers: Production activities 1) For £550,000 of Machining cost, the cost driver is 28,000 machining hours, and that gives a rate of £19.64 per machine hour. The production will require a 25 hours for machining per batch, what will give a cost for this activity £491.07. 2) The Assembly cost for the year in respect of a whole company is budgeted for £265,000. The current production requires a 40,320 direct labour hours with a 28,000 for machining. I have made an assumption that machining hours deducted from whole direct labour hours will give assembly hours (40,320-28,000=12,320 assembly hours). The next step is to calculate the assembly rate per hour £265,000/12,320 hours = £21.51, and the batch of chairs will require 10 hours of assembly, what