its price list. The most popular requirement is for a folded leaflet made from a single sheet of A4 paper. From past records and budgeted figures, the following data have been estimated for a typical batch of 12,000 leaflets. Artwork GH¢ 130 Machine setting 8 hours at GH¢ 44 per hour Paper GH¢ 25 per 2,000 sheets Ink and consumables GH¢ 40 Printers wages 8 hours at GH¢ 16 per hour General fixed overheads are GH¢ 30,000 per period during which a total of 600 labour hours are expected to be worked. The firm wishes to achieve 30% profit on sales. Required i. Calculate the bato cost i. Calculate the selling price per thousand leaflets for quantities of 12,000 and 24,000 leaflets. ii. Calculate the profit for the period if 64 batches of 12,000 and 36 batches of 24,000 were sold and costs and revenues were as budgeted.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 1EA: Blue Book printing is budgeting sales of 25,000 units and already has 5,000 in beginning inventory....
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1. A company specialises in printing advertising leaflets and is in-the-process of preparing
its price list. The most popular requirement is for a folded leaflet made from a single
sheet of A4 paper. From past records and budgeted figures, the following data have
been estimated for a typical batch of 12,000 leaflets.
Artwork GH¢ 130
Machine setting 8 hours at GH¢ 44 per hour
Paper GH¢ 25 per 2,000 sheets
Ink and consumables GH¢ 40
Printers wages 8 hours at GH¢ 16 per hour
General fixed overheads are GH¢ 30,000 per period during which a total of 600 labour
hours
are expected to be worked.
The firm wishes to achieve 30% profit on sales.
Required
i.
Calculate the batch cost
i.
Calculate the selling price per thousand leaflets for quantities of 12,000 and 24,000
leaflets.
İi.
Calculate the profit for the period if 64 batches of 12,000 and 36 batches of 24,000
were sold and costs and revenues were as budgeted.
Transcribed Image Text:1. A company specialises in printing advertising leaflets and is in-the-process of preparing its price list. The most popular requirement is for a folded leaflet made from a single sheet of A4 paper. From past records and budgeted figures, the following data have been estimated for a typical batch of 12,000 leaflets. Artwork GH¢ 130 Machine setting 8 hours at GH¢ 44 per hour Paper GH¢ 25 per 2,000 sheets Ink and consumables GH¢ 40 Printers wages 8 hours at GH¢ 16 per hour General fixed overheads are GH¢ 30,000 per period during which a total of 600 labour hours are expected to be worked. The firm wishes to achieve 30% profit on sales. Required i. Calculate the batch cost i. Calculate the selling price per thousand leaflets for quantities of 12,000 and 24,000 leaflets. İi. Calculate the profit for the period if 64 batches of 12,000 and 36 batches of 24,000 were sold and costs and revenues were as budgeted.
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ISBN:
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