Please help me KENT Ltd produces a range of products. Manufacturing is undertaken using one of two processes: theAlpha and the Omega Processes. All of the products are manufactured in batches The current pricingpolicy has been to absorb all overheads using direct labour hours to obtain total cost.A recent detailed analysis has examined overhead cost; the results are:Analysis of overhead costsMonthly volumeCost per month (£)192,00089,60085,80091,200101,400560,000Alpha Process costOmega Process cost960 hours2,560 hours520 set-ups380 movementsSet-up costHandling chargesOther overheadsTotal overhead costsThere are 2,000 direct labour hours available each month.(see below)Two of KENT's products are a JTI01 and a GR27. JT101S are produced by the Alpha Process in asimple operation. GR275 are manufactured by the Omega Process. Both products are sold by the metre.Details of the two products are:JT1011,000 metres1,000 metresGR27500 metresMonthly volumeBatch sizeProcessing time per batchAlphaOmegaSet-ups per batchHandling charges per batchMaterials per metreDirect labour per metre (Direct cost)Direct labour is paid at £16 per hour.50 metres100 hours25 hours2 set-ups5 movements£15hour1 set-up1 movement£16/½ hourQ. What is the set-up cost per metre for JT101S42.9 O0.165 O1 0165 O

Kent produces two products: 1. JT101 2. GR27 We are provided with a total set up cost= of 85800…

KENT Ltd produces a range of products. Manufacturing is undertaken using one of two processes: the Alpha and the Omega Processes. All of the products are manufactured in batches The current pricing policy has been to absorb all overheads using direct labour hours to obtain total cost. A recent detailed analysis has examined overhead cost; the results are: Analysis of overhead costs Cost per month (£) 192,000 89,600 85,800 91,200 Monthly volume Alpha Process cost Omega Process cost Set-up cost Handling charges Other overheads Total overbead costs 960 hours 2,560 hours 520 set-ups 380 movements (see below) 101,400 560,000

KENT Ltd produces a range of products. Manufacturing is undertaken using one of two processes: the Alpha and the Omega Processes. All of the products are manufactured in batches The current pricing policy has been to absorb all overheads using direct labour hours to obtain total cost. A recent detailed analysis has examined overhead cost; the results are: Analysis of overhead costs Cost per month (£) 192,000 89,600 85,800 91,200 Monthly volume Alpha Process cost Omega Process cost Set-up cost Handling charges Other overheads Total overbead costs 960 hours 2,560 hours 520 set-ups 380 movements (see below) 101,400 560,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 13EB: Stacks manufactures two different levels of hockey sticks: the Standard and the Slap Shot. The total...

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