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 year2021.Shs 40,000,0002,500 hoursBudget Production overhead costBudgeted Direct labour hoursNote: [The company allocated Factory overheads to customer jobs using the BudgetedDirect labour hours as the absorption base.2. The cost details for Job-FD800 are as given below;1.Cost of Materials used in the Job250,0002.Direct labour hours used to complete the job (400 Hrs).400 Direct Labour hoursThe company pays Shs 1,200 For every direct labour hourused in the job3.The company hired a special machine for stitching thematerial used in the sofa at a cost of:35,0004.The Direct Labour hours used to complete the job400 Direct Labour hours5.The company adds a profit margin of 25% to the totalcost of the job to determine the Selling price of the job.Profit Margin (10%) Required:i) Calculate the overhead absorption rate per direct labour hour for the company usingmachine hours as the absorption base.ii) Prepare the job cost sheet for Job-FD800 using the above information. The job cost sheetshould provide the total cost for the job and the selling price.

Name: The following information is provided for FairDeal furniture ltd.The i
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Description: 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

The production overheads mean the indirect costs incurred.

Business

Accounting

1. The following budget figures are provided for the production department for the year 2021. + Budget Production overhead cost Shs 40,000,000 2,500 hours Budgeted Direct labour 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). 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: 4.The Direct Labour hours used to complete the job 400 Direct Labour hours 35,000 400 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.

1. The following budget figures are provided for the production department for the year 2021. + Budget Production overhead cost Shs 40,000,000 2,500 hours Budgeted Direct labour 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). 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: 4.The Direct Labour hours used to complete the job 400 Direct Labour hours 35,000 400 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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THIS is cOST ACCOUNTING FOR FACTORY OVERHEAD. PLEASE ANSWER AND SHOW SOLUTIONS