(b) The following information is provided for FairDeal furniture Įtd.The information will be used to determine the total cost incurred for Job-FD800 which entailed production of sofa sets The company has one production department where all the furniture is produced. 1. The following budget figures are provided for the production department for the year 2021. Budget Production overhead cost Shs 40,000,000 Budgeted Direct labour hours 2,500 hours Note: The company allocated Factory overheads to customer jobs using the Budgeted Direct labour hours as the absorption base. 2. The cost details for Job-FD800 are as given below; 1.Cost of Materials used in the Job 250,000 2.Direct labour hours used to complete the job (400 Hrs). 400 Direct Labour hours The company pays Shs 1,200 For every direct labour hour used in the job 3.The company hired a special machine for stitching the material used in the sofa at a cost of: 35,000 4.The Direct Labour hours used to complete the job 400 Direct Labour hours Profit Margin (10%) 5.The company adds a profit margin of 25% to the total cost of the job to determine the Selling price of the job.

(b) The following information is provided for FairDeal furniture Įtd.The information will be used to determine the total cost incurred for Job-FD800 which entailed production of sofa sets The company has one production department where all the furniture is produced. 1. The following budget figures are provided for the production department for the year 2021. Budget Production overhead cost Shs 40,000,000 Budgeted Direct labour hours 2,500 hours Note: The company allocated Factory overheads to customer jobs using the Budgeted Direct labour hours as the absorption base. 2. The cost details for Job-FD800 are as given below; 1.Cost of Materials used in the Job 250,000 2.Direct labour hours used to complete the job (400 Hrs). 400 Direct Labour hours The company pays Shs 1,200 For every direct labour hour used in the job 3.The company hired a special machine for stitching the material used in the sofa at a cost of: 35,000 4.The Direct Labour hours used to complete the job 400 Direct Labour hours Profit Margin (10%) 5.The company adds a profit margin of 25% to the total cost of the job to determine the Selling price of the job.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...

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The following information is provided for FairDeal furniture ltd.The information will be used to determine the total cost incurred for Job-FD800 which entailed production of sofa sets.The company has one production department where all the furniture is produced. The following budget figures are provided for the production department for the year 2021. Budget Production overhead cost Shs 40,000,000 Budgeted Direct labour hours 2,500 hours Note: The company allocated Factory overheads to customer jobs using the Budgeted Direct labour hours as the absorption base. The cost details for Job-FD800 are as given below; 1.Cost of Materials used in the Job 250,000 2.Direct labour hours used to complete the job (400 Hrs). The company pays Shs 1,200 For every direct labour hour used in the job 400 Direct Labour hours 3.The company hired a special machine for stitching the material used in the sofa at a cost of: 35,000 4.The Direct Labour hours used to complete…
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The following information is provided for FairDeal furniture ltd.The information will be used to determine the total cost incurred for Job-FD800 which entailed production of sofa sets.The company has one production department where all the furniture is produced. 1. The following budget figures are provided for the production department for the year 2021. Budget Production overhead cost Shs 40,000,000 Budgeted Direct labour hours 2,500 hours Note: The company allocated Factory overheads to customer jobs using the Budgeted Direct labour hours as the absorption base.2. The cost details for Job-FD800 are as given below; 1.Cost of Materials used in the Job 3.The company hired a special machine for stitching the material used in the sofa at a cost of: 4.The Direct Labour hours used to complete the job 5.The company adds a profit margin of 25% to the total cost of the job to determine the Selling price of the job. 250,000 35,000 400 Direct Labour hours Profit Margin (10%)…
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