FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Birdie Limited is a manufacturing company producing a variety of golf clubs. It operates from one factory that is geographically separated from its head office. The components for the clubs are assembled in the assembling department; they are then passed through to the finishing department where they are painted and packed. There are three service cost centres: administration, stores, and manufacturing support. The following costs were collected for the year to 31 May 2021: ETT Department Number of Allocated cost centre overhead costs (£,000) 225 employees 67 Assembling Finishing Administration 60 134 84 300 89 Stores 17 Manufacturing support 120 34 Additional information: The allocated cost centre overhead costs are all considered to be indirect costs as far as specific units are concerned. During the year to 31 May 2021, 208,000 machine hours were worked in the assembling department, and 270,000 direct labour hours in the finishing department. During the year to 31 May 2021, the…arrow_forwardThen, how about the fixed cost and the shipping cost?arrow_forwardWhich of the following is a cost objective? Select one: O A. The cost of educating a student O B. The cost of constructing a house The cost of carrying a passenger O C. O D. All of the above.arrow_forward
- Why should the total costs of the machine be viewed as an asset and allocated against the future revenue that the machine will generate?arrow_forwardHow did you get the lab expense?arrow_forwardWhen is depreciation a product cost? When is depreciation a period cost Please Explain both brieflyarrow_forward
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