Gordon Helps and Associates Company ltd makes two products. Information regarding one of those products is given below: Budgeted output /Sales for the year: 900 units Standard details for one unit Direct materials 40 square metres at $5.30 per square meter Direct wages Bonding department : 24 hours at $5.00 per hour Finishing depart: 15 hours at $4.80 per hour Variable overhead $1.50 per bonding labour hour $1 per finishing labour hour Fixed production overhead $36,000 Fixed non-production overhead $27,000 Note: Variable overheads are recovered (absorbed) using hours, fixed overheads arerecovered on a unit basis Required: a. Prepare a standard cost card for one unit and enter on the standard cost card the following subtotals: i. Prime cost ii. Variable production cost iii. Total production cost iv. Total cost b. Calculate the selling price per unit allowing for a profit of 25% of the selling price.
Gordon Helps and Associates Company ltd makes two products. Information regarding one of those products is given below:
Budgeted output /Sales for the year: 900 units
Standard details for one unit
Direct materials 40 square metres at $5.30 per square meter
Direct wages Bonding department : 24 hours at $5.00 per hour
Finishing depart: 15 hours at $4.80 per hour
Variable overhead $1.50 per bonding labour hour
$1 per finishing labour hour
Fixed production overhead $36,000
Fixed non-production overhead $27,000
Note: Variable overheads are recovered (absorbed) using hours, fixed overheads arerecovered on a unit basis
Required:
a. Prepare a
i. Prime cost
ii. Variable production cost
iii. Total production cost
iv. Total cost
b. Calculate the selling price per unit allowing for a profit of 25% of the selling price.
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