Budgeted purification fixed, Financial Accounting

XYZ Municipality purifies water before it enters the reticulation network. There are presently 3 purification processes available to the municipality. These processes sre referred to as A, B and C. Budgeted costs and purification information for the coming period is as follows:

Service

 

A

B

C

 

 

(all per 1,000 kiloliters)

Costs

Direct materials

R 120

R 100

R 60

 

Direct labour

R 42

R 42

R 28

 

Equipment hours

6hrs

6hrs

4hrs

 

Labour hours

0.1hr

0.1hr

0.02hrs

 

Output in 1,000 kl

1,200

1,000

800

 

They are usually produced in production runs of 10,000 kl and distributed to consumers in batches of 5,000 kl. The municipality uses a cost plus 20% mark-up in order to measure prices. Budgeted purification fixed overhead is absorbed using equipment hour rate, and budgeted overhead for the coming period has been analyzed as follows:

Rent, supervision, power and depreciation

R 260,000

Set-up costs

R 150,000

Goods (chemicals) inwards

R 96,000

Quality inspection

R 52,500

Reticulation

R 97,500

Total

R 656,000

 

Budgeted equipment hours for the period is 16,400 hours

Required:

    (i)   Measure the budgeted total cost per 1,000 kl for every process, showing clearly the prime

       cost, overhead cost and total cost.

(ii)  Using your total cost estimates from (a) (i) and a mark-up of 20% on cost, measure the

       budgeted price per 1,000 kl of every of the 3 processes.

 

Posted Date: 3/19/2013 6:18:35 AM | Location : United States







Related Discussions:- Budgeted purification fixed, Assignment Help, Ask Question on Budgeted purification fixed, Get Answer, Expert's Help, Budgeted purification fixed Discussions

Write discussion on Budgeted purification fixed
Your posts are moderated
Related Questions
The bid-offer spread as a function of daily trading volume is given by :p(q) = a + b*exp(cq) where q = daily trading volume a = 0.08 b= 0.10 c = 0.05 A trader wants to unwind

Number of Periods of a one Payment a) If you deposit money today in an account that pays 7.5% yearly interest, how long will it take to double your money? b) What's the future

What are the positive and negative critiques of investment property

What is the relation of profit and matching principle? Do you have a form for this kind of assignment in writting Financial Accounting?

In June 2012 Company has supplied some goods to a customer on a sale on return basis. The value of the goods was Rs. 120,000. The company recorded this transaction as credit sale,

Q. Required return on equity? Required return on equity Where D 1 = Next year's dividend g = Dividend growth rate P o = Market price of share r = Percentag


For getting the EOQ formula we shall use the subsequent symbols: U = annual usage/demand Q = quantity ordered F = cost per order C = per cent carrying cost P  = pric

Personal representatives duties Personal representation has the following duties; 1) To provide and pay out of the estate of the deceased, the expenses of a reasonable funeral

Question 1 Suppose you take out a loan of $10,000, repayable by five equal annual instalments. The interest rate is 10% per year. (a) How much do you need to repay per year