Required: (a) Prepare a schedule of overheads costs to be charged to production departments Machining, Assembly and Finishing. ( Work to the nearest cent) (b) Calculate the overhead absorption rates for departments machining, assembly and finishing for the forthcoming period. (Work to the neares cent) (c) Prepare a quotation for job K64 to be commenced next period, assuming it has:
Shilongo Ltd uses
The following costs have been produced:
| Machining | Assembly | Finishing | Stores | Maintenance | |
| Overhead costs | 6000 | 2500 | 1500 | 1000 | 800 |
The number of machine and labour hours budgeted for the forthcoming period is budgeted as follows:
| Machining | Assembly | Finishing | |
| Machine hours | 500 | 40 | 50 |
| Labour hours | 100 | 300 | 200 |
| Machining | Assembly | Finishing | Stores | Maintenance | |
| Maintenance | 55% | 20% | 20% | 5% | - |
| Stores | 40% | 30% | 20% | - | 10% |
Required:
(a) Prepare a schedule of overheads costs to be charged to production departments Machining, Assembly and Finishing. ( Work to the nearest cent)
(b) Calculate the overhead absorption rates for departments machining, assembly and finishing for the forthcoming period. (Work to the neares cent)
(c) Prepare a quotation for job K64 to be commenced next period, assuming it has:
Direct materials; $240
Direct labour; $150
and requires;
| Machine hours | Labour hours | |
| Machining department | 45 | 10 |
| Assembly department | 5 | 15 |
| Finising department | 4 | 12 |
profit is 20% of selling price
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