Cost and Management

Beetham Celestin

Assignment #2

(a) Walker Company

Manufacturing dept:

= 1800000/ 50000

= $36/machine hrs

Assembly dept:

= 3600000/200000

= 18/machine hrs

(b) Manufacturing overhead allocated to job 400:

Machine dept Assembly dept Total

OAR $36 $18

Labour hrs 1500

Machine hrs 2000

36*2000 18*1500

72000 27000 99000

(c) Total Quotation price of job #400

$

Direct material (45000+63000) 108000

Direct Labour (14000+15000) 29000

Factory overheads 99000

Design Costs 7000

243000

Distribution and administrative costs (20%*243000) = 48600

= 291600

Margin price: = 25%-100% = 75%

= 291600/75%

= 388800

(d) Variance:

Machine dept/ budget-actual+ Assembly/budget-actual

= 1800000-2100000+3600000-3700000

= 300000+100000

= 400000

(a)

| Units ToAccount For | UnitsAccounted For | From Process 1 | Direct Materials Added | Conversion Costs |

Beginning WIP | 0 | | | | |

From Process 1 | 15000 | 15000 | | | |

Normal Losses | 750 | 750 | 750 | 375 | 225 |

Abnormal Losses | 1000 | 1000 | 1000 | 500 | 300 |

Transferred to FG | 12000 | | 12000 | 12000 | 12000 |

Ending WIP | 1250 | | 1250 | 1250 | 1250 |

| | | | | |

Equivalent Units | | | 15000 | 13875 | 13025 |

(e) WIP – Process 2 A/C |

| Units | $ | | Units | $ |

Beg. WIP | | 0 | | | |

Direct materials | | 388800194400 | Normal loss | 750 | 30000 |...