QUESTION 6(a) A curtain-making business manufactures quality curtains to customers' orders. It has three production depa

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Question 6 A A Curtain Making Business Manufactures Quality Curtains To Customers Orders It Has Three Production Depa 1 (81.68 KiB) Viewed 32 times

QUESTION 6(a) A curtain-making business manufactures quality curtains to customers' orders. It has three production departments (X, Y and Z) which have overhead absorption rates (per direct labour hour) of $12.86, $12.40 and $14.03 respectively. Two pairs of curtains are to be manufactured for customers. Direct costs are as follows: Job TN8 Direct material $154 Direct labour 20 hours dept X 12 hours dept Y 10 hours dept z Labour rates per hour are as follows: $3.80 (X); $3.50 (Y); $3.40 (Z). Job KT2 $108 16 hours dept X 10 hours dept Y 14 hours dept z The firm quotes prices to customers that reflect a required profit of 25% on selling price. Required Calculate the total cost and selling price of each job.