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

Calculate a volatility smile, I am taking  finance class. Our books is John...

I am taking  finance class. Our books is John C. Hull 2nd edition Risk Management and Financial Institutions.  Our HW  are from this book. I have four questions I need help with.

What is the internal rate of return of the project, Hydroponics is consider...

Hydroponics is considering adding another greenhouse that would cost $95,000 and generate $20,000 in annual net cash flows over its 8 year expected life. What is this project's int

Credit reference agencies and credit scoring, Q. Credit Reference Agencies ...

Q. Credit Reference Agencies and Credit Scoring ? A several organisations example Dun & Bradstreet and Standard & Poor provide credit scores and ratings for companies. These ma

Process to increase the financial health of company, Process to increase th...

Process to increase the financial health of company Financial affairs of a limited company enter public domain. With exception of small companies, there is also a requirement f

Maintenance-trusts laws and accounts, MAINTENANCE Trustees may pay to t...

MAINTENANCE Trustees may pay to the parent or guardian out of income of a fund held on the trust for an infacnt reasonable sums for his maintenance and education, having regard

Addmission of a partner, is it compulsory to give premium for goodwill whil...

is it compulsory to give premium for goodwill while entering into a business..

Evaluating the investment using return on capital employed, Evaluating the ...

Evaluating the investment using return on capital employed: Annual depreciation charge = 1500000/5 = $300000 Average investment = 1500000/2 = $750000 Average annual

What is inheritance in gross income, Q. What is Inheritance in Gross income...

Q. What is Inheritance in Gross income? Inheritance - As distinguished from a BEQUEST or devise, an inheritance is property attained through laws of descent and distribution fr

Accounting equation, Can anyone here help me in this question ?? Kindly tel...

Can anyone here help me in this question ?? Kindly tell how can we solve it Mr. “A” starts a new business. Before to start the business operation, he has purchased vehicle Rs. 1,

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