Budgeted purification fixed, Financial Accounting

Assignment Help:

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.

 


Related Discussions:- Budgeted purification fixed

Describe about backdating, Q. Describe about Backdating? i) Exercise pr...

Q. Describe about Backdating? i) Exercise price is based on a lower share price prior to option grant date. Practice of marking a document with a date that precedes actual date

Essay, Can you help me with that?

Can you help me with that?

Prepare a cash budget, The following information for the six months ended 3...

The following information for the six months ended 31 December 2009 relates to the business of Mr N Morris: a) Opening cash (including bank) balance Rs 1,200 b) Production in unit

Calculate operating cash flow , Question 1 The following information s...

Question 1 The following information should be used for questions #1 through #7: Jersies, Inc financial statement data.   2009 2010

Show example on ratio calculations, Q. Show example on Ratio calculations? ...

Q. Show example on Ratio calculations? The current gearing of Springbank plc = 100 × (3·5m/4m) = 87·5% Total debt after issuing $3·4m of debt = 3·5m + 3·4m = $6·9m New le

Bond Valuation, FV of Bond 20000, CR 0.045, MR 0.059, Remaining payments 32...

FV of Bond 20000, CR 0.045, MR 0.059, Remaining payments 32. Answer

Quantitative performance measure, The managerial performance measure must b...

The managerial performance measure must be quantitative and the manner in which it is to be calculated should be specified. The managerial performance measure must ideally be linke

Break-even ebit, Break-Even EBIT: Rolston Corporation is comparing two ...

Break-Even EBIT: Rolston Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, Rolston would have 1

Petition by creditor-bankruptcy, Petition by creditor Any creditor incl...

Petition by creditor Any creditor including an assignee of a debt, may petition, provided: The debt due to him amounts to at least Shs 1,000; The debt is certain and i

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd