Additional information: 1.Maintenance department renders service to all other de

ID: 2333489 • Letter: A

Question

Additional information: 1.Maintenance department renders service to all other departments.whereas quality control renders service to production departments only 2.The maintenance department is allocated using the number of employees and the quality control department is allocated on the basis of machine hours
Required: 1.Calculate the total manufacturing costs for both the cutting and the finishing department 2.calculate the planned product cost per unit in the finishing department 13) PART 4.2 Chwepheshe Limited manufactures and sells high quality wood products. The company has two production departments: Cutting and Finishing. It also has two service departments, Quality control an Maintenance ich have been Budgeted production costs and the expected level of activity for the coming year, wh developed by the company's management accountant are presented below Cutting FinishingQuality Maintenance control 6 300 10 300 Prime costs Direct material Direct labour. R69 300 R37 800 R144 900 R41 400 Budgeted overheads: Machine hours... Number of employees 41 400 5 400 27 R29 205 2 100 21 R24 900 1 500 6 R39 970 1 200 6

Explanation / Answer

(39970*27/54)

=19985

(39970*21/54)

=15544

(39970*6/54)

=4441

Quality control

(24900+4441=29341)

(29341*5400/7500)

=21126

(2) Finishing dept cost per unit=210059/10300=20.39

Cutting Finishing Quality Control Maintainance Overhead: Maintainance Dept