XYZ Co has observed that 80% learning curve ratio applies to all labour related costs each time a new model enters production. It is anticipated that 640 units will be manufactured during 2020. Direct labour cost for the first lot of 10 units amounts to RO 14,000 at RO 14 per hour. Variable overhead cost is assigned to products at the rate of RO 3 per direct labour hour. You are required to determine average labour cost of first 80 units. a. OMR 918.54 b. OMR 1134 c. OMR 10200.6 d. None of the given options
XYZ Co has observed that 80% learning curve ratio applies to all labour related costs each time a new model enters production. It is anticipated that 640 units will be manufactured during 2020. Direct labour cost for the first lot of 10 units amounts to RO 14,000 at RO 14 per hour. Variable overhead cost is assigned to products at the rate of RO 3 per direct labour hour. You are required to determine average labour cost of first 80 units. a. OMR 918.54 b. OMR 1134 c. OMR 10200.6 d. None of the given options
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter16: Job Order Costing
Section: Chapter Questions
Problem 4CMA: Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and...
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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6-XYZ Co has observed that 80% learning curve ratio applies to all labour related costs each time a new model enters production. It is anticipated that 640 units will be manufactured during 2020. Direct labour cost for the first lot of 10 units amounts to RO 14,000 at RO 14 per hour. Variable overhead cost is assigned to products at the rate of RO 3 per direct labour hour. You are required to determine average labour cost of first 80 units.
a. OMR 918.54
b. OMR 1134
c. OMR 10200.6
d. None of the given options
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