Your company manufactures three products. Alpha. Beta and Gamma. The following information refers to next month: Alpha Beta Gamma Sales demand 50 150 200 Raw materials units GH¢ 100 GH¢ 150 GH¢ 100 Direct labor hours units 5 10 2 Fixed overheads units GH¢ 30 GH¢ 60 GH¢ 12 Direct labor is paid at GHc3.00 per hour. Variable overhead is equal to 10% of the cost of materials. Fixed overheads are absorbed to the products at the rate of 200% of the total direct labor cost. The selling price is calculated by doubling the prime cost (total direct cost) Required: 1. Calculate the contribution per direct labor hour for each product and rank them. 2. Using the ranking from the previous answer in (1). prepare a forecast of the profit for each product and in total for next month if only 1.650 direct labor hours are available.

Your company manufactures three products. Alpha. Beta and Gamma. The following information refers to next month: Alpha Beta Gamma Sales demand 50 150 200 Raw materials units GH¢ 100 GH¢ 150 GH¢ 100 Direct labor hours units 5 10 2 Fixed overheads units GH¢ 30 GH¢ 60 GH¢ 12 Direct labor is paid at GHc3.00 per hour. Variable overhead is equal to 10% of the cost of materials. Fixed overheads are absorbed to the products at the rate of 200% of the total direct labor cost. The selling price is calculated by doubling the prime cost (total direct cost) Required: 1. Calculate the contribution per direct labor hour for each product and rank them. 2. Using the ranking from the previous answer in (1). prepare a forecast of the profit for each product and in total for next month if only 1.650 direct labor hours are available.

Name: Your company manufactures three products. Alpha. Beta and Gamma. The f
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Description: Your company manufactures three products. Alpha. Beta and Gamma. The following information refers to next month: AlphaBetaGammaSales demand50150200Raw materials unitsGH¢ 100GH¢ 150GH¢ 100Direct labor hours units5102Fixed overheads unitsGH¢ 30GH¢ 60GH

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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A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
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Your company manufactures three products. Alpha. Beta and Gamma. The following information refers to next month: Alpha Beta Gamma Sales demand 50 150 200 Raw materials units GH¢ 100 GH¢ 150 GH¢ 80 Direct labor hours units 5 10 2 Fixed overheads units GH¢ 30 GH¢ 60 GH¢ 12 Direct labor is paid at GHc3.00 per hour. Variable overhead is equal to 10% of the cost of materials. Fixed overheads are absorbed to the products at the rate of 200% of the total direct labor cost. The selling price is calculated by doubling the prime cost (total direct cost) Required: 1.Calculate the contribution per unit for each product and rank them 2. Using the ranking from the previous answer in (1). prepare a forecast of the profit for each product and in total for next month if only 1,650 direct labor hours are available
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