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

Prepare the appropriate entry, LCI Cable Company grants 1.4 million perform...

LCI Cable Company grants 1.4 million performance stock options to key executives at January 1, 2013. The options entitle executives to receive 1.4 million of LCI $1 par common shar

Small business stock, Small Business Stock -No corporate investors can excl...

Small Business Stock -No corporate investors can exclude up to 50 percent of the GAIN they realize on disposition of qualified small business stock issued after Aug. 10, 1993 and h

Common stock, The common stock of the CC Corporation has been trading in a ...

The common stock of the CC Corporation has been trading in a narrow price range of around $50 for months, and you are convinced it is going to stay in that range for the next 3 mon

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 capital gain, Q. What is Capital Gain? Capital Gain - Portion o...

Q. What is Capital Gain? Capital Gain - Portion of total GAIN recognized on the sale or exchange of a no inventoryasset that isn't taxed as ORDINARY INCOME. Capital gains have

Types of gift by way of a will-executorship laws and account, TYPES OF GIFT...

TYPES OF GIFT BY WAY OF A WILL (a) A special (or specific) legacy is a testamentary gift of a particular part of the property of the testator, which identifies that part by a s

The maximum possible loss method-partnership, The maximum possible loss met...

The maximum possible loss method Under this method, a table is set up to compute the amounts payable to each partner. The results of the computation may be then posted into the

Finacial stament, Ask question #Minimum 10010 qestions words accepted#

Ask question #Minimum 10010 qestions words accepted#

Order point formula, Order Point Formula The analysis discussed above t...

Order Point Formula The analysis discussed above tends to be somewhat cumbersome when probability distributions are most complex and dependent and multi-period cases are involv

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