An order for a metal fabrication requires production processes from two departments as follows: 1. Laser cutting 2. Folding/bending and welding The laser cutting is costed on a machine hour rate basis and has already been determined to be £2500 for this order. Determine the total cost of this fabrication given the following information The bending and welding department requires 30 hours of labour costed at £15 per hour The folding/bending and welding department has an annual overhead of £216k to absorb The total annual labour hours for this department are 3600 hours (overheads are absorbed on this basis) The direct cost of materials for this fabrication is £800. What is the total production cost of this order?

Precision Machining Technology (MindTap Course List)
2nd Edition
ISBN:9781285444543
Author:Peter J. Hoffman, Eric S. Hopewell, Brian Janes
Publisher:Peter J. Hoffman, Eric S. Hopewell, Brian Janes
Chapter1: Introduction To Machining
Section1.3: Workplace Skills
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An order for a metal fabrication requires production processes from two departments as follows:
1. Laser cutting
2. Folding/bending and welding
The laser cutting is costed on a machine hour rate basis and has already been determined to be f£2500 for this order.
Determine the total cost of this fabrication given the following information
The bending and welding department requires 30 hours of labour costed at £15 per hour
The folding/bending and welding department has an annual overhead of £216k to absorb
The total annual labour hours for this department are 3600 hours (overheads are absorbed on this basis)
The direct cost of materials for this fabrication is £800.
What is the total production cost of this order?
O£4750
O£5100
O ES550
£3050
£219.759
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2020
Transcribed Image Text:An order for a metal fabrication requires production processes from two departments as follows: 1. Laser cutting 2. Folding/bending and welding The laser cutting is costed on a machine hour rate basis and has already been determined to be f£2500 for this order. Determine the total cost of this fabrication given the following information The bending and welding department requires 30 hours of labour costed at £15 per hour The folding/bending and welding department has an annual overhead of £216k to absorb The total annual labour hours for this department are 3600 hours (overheads are absorbed on this basis) The direct cost of materials for this fabrication is £800. What is the total production cost of this order? O£4750 O£5100 O ES550 £3050 £219.759 Previous Page Page 17 of 20 Next Page 36°C 2020
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