Can you help me with this task, please? Operating at a normal level ofunits of product each period. The direct labour wage rate is £6 per hour. Two-and-a-half metresof direct materials go into each unit of product; the material costs £8.60 per metre. The flexiblebudget used to plan and control manufacturing overhead costs is given below (in condensedform):direct labour-hours, Lasser Company produces 10,000Direct labour hoursCost formulaOverhead costs(per direct labour-hour)000'0r000'oɛ000'orVariable costs£38,000£76,000Fixed costs168,000Total overhead cost£ 225,000£ 244,000Required1- Using 30,000 direct labour-hours as the denominator activity, compute thepredetermined overhead rate and break it down into variable and fixed elements.2- Complete the standard cost card below for one unit of product:Direct materials, 2.5 metres at £ 8.60 £ 21.50Direct labour, ?Variable overhead, ?Fixed overhead, ?Total standard cost per unitVariable overhead per unit /30000 DFixed overhead per unit/30000Hours unitperDirect materialsDirect labourVariable overheadsFixed overheads

Predetermined Overhead Rate per labor hour=Total Overhead CostTotal labor hours

inect labour-hours, Lasser Company produces 10,000 units of product each period. The direct labour wage rate is £6 per hour. Two-and-a-half metres of direct materials go into each unit of product; the material costs £8.60 per metre. The flexible budget used to plan and control manufacturing overhead costs is given below (in condensed form): Direct labour hours Cost formula Overhead costs (per direct labour-hour) 20,000 000'08 £ 57,000 000'ov Variable costs £190 £38,000 000'9L 3 Fixed costs 168,000 000'891 Total overhead cost £206,000 £ 225,000 £244,000 Required 1- Using 30,000 direct labour-hours as the denominator activity, compute the predetermined overhead rate and break it down into variable and fixed elements. 2- Complete the standard cost card below for one unit of product: Direct materials, 2.5 metres at £ 8.60 £ 21.50 Direct labour, ? Variable overhead, ? Fixed overhead, ? Total standard cost per unit Variable overhead per unit /30000 = Fixed overhead per unit = 0000E/ Hours per unit Direct materials Direct labour Yariahle oyerheads

inect labour-hours, Lasser Company produces 10,000 units of product each period. The direct labour wage rate is £6 per hour. Two-and-a-half metres of direct materials go into each unit of product; the material costs £8.60 per metre. The flexible budget used to plan and control manufacturing overhead costs is given below (in condensed form): Direct labour hours Cost formula Overhead costs (per direct labour-hour) 20,000 000'08 £ 57,000 000'ov Variable costs £190 £38,000 000'9L 3 Fixed costs 168,000 000'891 Total overhead cost £206,000 £ 225,000 £244,000 Required 1- Using 30,000 direct labour-hours as the denominator activity, compute the predetermined overhead rate and break it down into variable and fixed elements. 2- Complete the standard cost card below for one unit of product: Direct materials, 2.5 metres at £ 8.60 £ 21.50 Direct labour, ? Variable overhead, ? Fixed overhead, ? Total standard cost per unit Variable overhead per unit /30000 = Fixed overhead per unit = 0000E/ Hours per unit Direct materials Direct labour Yariahle oyerheads

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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Boarders estimates overhead will utilize 160,000 machine hours and cost $80,000. It takes 4 machine hours per unit, direct material cost of $5 per unit, and direct labor of $5 per unit. What is the cost of each unit produced?
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Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct labor hours costing $1,500,000 in labor and utilizing 15,000 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
Cozy, Inc., manufactures small and large blankets. It estimates $950,000 in overhead during the manufacturing of 360,000 small blankets and 120,000 large blankets. What is the predetermined overhead rate if a small blanket takes 2 hours of direct labor and a large blanket takes 3 hours of direct labor?
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Remarkable Enterprises requires four units of part A for every unit of Al that it produces. Currently, part A is made by Remarkable, with these per-unit costs in a month when 4,000 units were produced: Variable manufacturing overhead is applied at $1.60 per unit. The other $0.50 of overhead consists of allocated fixed costs. Remarkable will need 8,000 units of part A for the next years production. Altoona Corporation has offered to supply 8,000 units of part A at a price of $8.00 per unit. If Remarkable accepts the offer, all of the variable costs and $2,000 of the fixed costs will be avoided. Should Remarkable accept the offer from Altoona Corporation?
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