DOC

Solution for outcome 1

By Eric Campbell,2014-12-03 23:51
12 views 0
Solution for outcome 1

     Solution for Mock Paper Outcome(s) 1 and 2

    Job Cost Operating Statement

    Direct Materials ? ? Material v 80 kg of @ ?4/kg 320 Material z 40 kg of @ ?6kg 240

     560 Direct Labour

     Department A 50 hrs @ ?3/hr 150

    Department B 55 hrs @ ?2/hr 110

     260 Direct Expenses

    Direct expense ( machine hire ) 350 350

     Prime Cost 1170.00

Production Overheads

    Department A ?3.33/lab hr x 50 166.50 Department B ?21.43/mach hr x 80 1714.40

     1880.90 Production cost 3050.90 Administration 15% Prime cost 175.50

    0.15x1170

     Selling and Distribution 15%Production cost 457.64

    0.15x3050.90

     633.14 Total costs 75% selling price 3684.04

    Profit margin 25% selling price 1228.01

Selling Price 4912.05

    Option A Option B Option C

    Units sold Per Unit 100 100 100

     ? ? ? ?

    ? ? ? ? Sales XX XX XX XX Less: Variable Costs

    Material A XX XX XX XX B XX XX XX XX

    Labour A XX XX XX XX B XX XX XX XX Opportunity cost XXXX

     XX XXX XXX XXX Contribution XXX XXX XXX XXX

Less Fixed Costs

    Production Overheads A X X X X Re-allocating overheads X

    Productions Overheads B X X X X Re-allocating overheads X

    Admin X X X X Selling/Dist X X X X

     XX XX XX XX

    Profit XX XX XX XX

Report this document

For any questions or suggestions please email
cust-service@docsford.com