QUESTION 2Appiah and Co. Ltd is a medium size company that have expertise in the manufacturing ofburglar proof doors for customers. It has three production departments through which all jobs areprocessed, namely, Assembling, Welding and Finishing departments. The following data relatesto the year ended 31st December, 2021:Budgeted Data:FinishingWelding118,800Assembling84,424Overheads (GH)89,320Direct labour hours15,400Machine hours6,9207,200Job FAA01 was undertaken during the last month of the year recording the following:Direct materials costGH¢ 38,000Direct labour:Assembling460 hours @ GH¢9/hrWelding550 hours @ GH¢9/hrFinishing1350hours @ GH¢8/hrTrial and testing cost of GH¢7,500 is incurred on each job.Production overheads (hours):Assembling 445Welding540Finishing1350It is company policy to make a mark-up of 50% of profit on each job.Required:i) Compute the relevant overhead absorption rate for each department for the year ended 31stDecember, 2021.ii) Determine the total cost and selling price of Job FAA01.manufacturing business which has the following quarterly

Overhead absorption rate=Total overhead/Total Overhead allocation base Total cost=Direct material+…

QUESTION 2 Appiah and Co. Ltd is a medium burglar proof doors for customers processed, namely, Assembling, V to the year ended 31st December, Budgeted Data: Overheads (GH) Direct labour hours Machine hours Job FAA01 was undertaken durin Direct materials cost Direct labour: Assembling 460 hours @ GHes Welding 550 hours @ GHe Finishing 1350hours @ GHe Trial and testing cost of GH¢7,5 Production overheads (hours): Assembling 445 Welding 540 Finishing 1350 It is company policy to make a ma Required: i) Compute the relevant overhead December, 2021. ii) Determine the total cost and se

QUESTION 2 Appiah and Co. Ltd is a medium burglar proof doors for customers processed, namely, Assembling, V to the year ended 31st December, Budgeted Data: Overheads (GH) Direct labour hours Machine hours Job FAA01 was undertaken durin Direct materials cost Direct labour: Assembling 460 hours @ GHes Welding 550 hours @ GHe Finishing 1350hours @ GHe Trial and testing cost of GH¢7,5 Production overheads (hours): Assembling 445 Welding 540 Finishing 1350 It is company policy to make a ma Required: i) Compute the relevant overhead December, 2021. ii) Determine the total cost and se

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 28E: Refer to Exercise 8.27. At the end of the year, Meliore, Inc., actually produced 310,000 units of...

See similar textbooks

Similar questions

Budget performance report for a cost center Sneed Industries Company sells vehicle parts to manufacturers of heavy construction equipment. The Crane Division is organized as a cost center. The budget for the Crane Division for the month ended August 31, 20Y6, is as follows (in thousands): During August, the costs incurred in the Crane Division were as follows: Instructions Prepare a budget performance report for the director of the Crane Division for the month of August.
Professional labor cost budget for a service company Based on the data in Exercise 7 and assuming that the average compensation per hour for staff is 40 and for partners is 175, prepare a professional labor cost budget for each department forLundquist Fretwell, CPAs, for the year ending May 31, 20Y8. Use the following column headings:
Professional labor cost budget for a service company Based on the data in Exercise 227 and assuming that the average compensation per hour for staff is 45 and for partners is 140, prepare a professional labor cost budget for each department for Rollins and Cohen, CPAs, for the year ending December 31, 20Y7. Use the following column headings: Staff Partners
Refer to Exercise 8.27. At the end of the year, Meliore, Inc., actually produced 310,000 units of the standard model and 115,000 of the deluxe model. The actual overhead costs incurred were: Required: Prepare a performance report for the period. In an attempt to improve budgeting, the controller for Meliore, Inc., has developed a flexible budget for overhead costs. Meliore, Inc., makes two types of products, the standard model and the deluxe model. Meliore expects to produce 300,000 units of the standard model and 120,000 units of the deluxe model during the coming year. The standard model requires 0.05 direct labor hour per unit, and the deluxe model requires 0.08. The controller has developed the following cost formulas for each of the four overhead items: Required: 1. Prepare an overhead budget for the expected activity level for the coming year. 2. Prepare an overhead budget that reflects production that is 10 percent higher than expected (for both products) and a budget for production that is 20 percent lower than expected.
Professional labor cost budget Based on the data in Exercise 13-5 and assuming that the average compensation per hour for staff is $36 and for partners is $300. prepare a professional labor cost budget for Day & Spieth, CPAs, for the year ending March 31. 20Y6. Use the following column headings:
Refer to Cornerstone Exercise 8.6. Required: 1. Calculate the total budgeted cost of units produced for Play-Disc for the coming year. Show the cost of direct materials, direct labor, and overhead. 2. Prepare a cost of goods sold budget for Play-Disc for the year. 3. What if the beginning inventory of finished goods was 75,200 (for 16,000 units)? How would that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.) Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 285,000 of them. Budgeted beginning inventory in units is 16,000 with unit cost of 4.75. (There are no beginning or ending inventories of work in process.) Required: 1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. 2. What if sales increased to 290,000 discs? How would that affect the ending finished goods inventory budget? Calculate the value of budgeted ending finished goods inventory.
Refer to Cornerstone Exercise 8.1, through Requirement 1. FlashKick requires ending inventory of product to equal 20 percent of the next months unit sales. Beginning inventory in January was 3,100 practice soccer balls and 400 match soccer balls. Required: 1. Construct a production budget for each of the two product lines for FlashKick Company for the first three months of the coming year. 2. What if FlashKick wanted a production budget for the two product lines for the month of April? What additional information would you need to prepare this budget? FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKicks best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following: Required: 1. Construct a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. 2. What if FlashKick added a third linetournament quality soccer balls that were expected to take 40 percent of the units sold of the match balls and would have a selling price of 45 each in January and February, and 48 each in March? Prepare a sales budget for Flash- Kick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter.