User Account

All Pages

Calculate the total costs of the special order

Assignment Help Accounting Basics
Reference no: EM131808694

Problem

ABC Ltd makes trailers. It receives a special order to produce 350 trailers for a local retail outlet. The order will take 2,100 kg of material that costs $16.10 per kg and will require 1,400 direct labour hours and 525 machine hours. The following are the expected/budgeted annual costs for ABC Ltd:

Direct labour               $327,600
Direct labour hours      25,795
Direct materials           $193,200
Indirect costs              $98,400
Machine hours             9,840

Required:

1. Calculate the overhead allocation rate: note that the process is labour-intensive
2. Calculate the total costs of the special order
3. Calculate the cost of the special order if ABC Ltd uses machine time as the basis for allocating overheads
4. Calculate the minimum price per trailer that ABC Ltd could accept.
5. Explain how segmented overhead cost pools and activity based costing can assist accurate costing for pricing purpose (200 words).

Reference no: EM131808694

Questions Cloud

Prepare retained earnings statement for year ended december : Marcie Davies owns and operates Gemini Advertising Services. Prepare a retained earnings statement for the year ended December 31, 2015
Major models of ultimate reality : Friedrich Nietzsche and Martin Luther King, Jr. are representatives of 2 major models of ultimate reality: materialism and transcendence.
Define the concept of vicarious liability : Define the concept of vicarious liability? Apply the elements of vicarious liability to the given scenarios?
Write a brief paragraph summarizing the test : Dishwasher detergent is packaged in containers that claim a weight of 24 ounces. Although there is some variation from one package to another.
Calculate the total costs of the special order : Calculate the overhead allocation rate: note that the process is labour-intensive. Calculate the total costs of the special order.
How much is feb total cost of production : Anticipated unit sales for Jan are 5,100; sales for Feb are 4,400, If units cost 10 each to produce how much is Feb total cost of production
How has the globalization phenomenon acted : How has the globalization phenomenon acted as a force multiplier concerning the problems in identifying, defining, and conceptualizing terrorism?
What is the amount of tax to be paid for a short period : What is the amount of tax to be paid for a short period assuming the tax from placing the short period on anannual basis
Which organizations try to enhance their overall performance : Incentive, compensation, and performance measurement systems are a common way in which organizations try to enhance their overall performance.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Cash flow statements for each period

"As discussed in class, you may prepare a working model in Excel that will produce forecasted Income Statement, Balance Sheet, and Cash Flow Statements for each period.

  Seaside enterprises issued bonds with a face value

What item(s) in the table would appear on the 2014 statement of cash flows?

  Chihooli inc manufactures radiation-shielding glass panels

chihooli inc. manufactures radiation-shielding glass panels. suppose chihooli is considering spending the following

  Amount of the adjusting entry for bad debt expense

Using the percentage-of-sales method, you estimate that total uncollectible accounts is $7,345. The Allowance for Doubtful Accounts prior to adjustment has a debit balance of $1,345. The Accounts Receivable balance is $55,909. The amount of the..

  Find the depreciation for double-declining-balance method

Determine the depreciation for 20Y5 and for 20Y6 by the double-declining-balance method

  Danson company is a chemical manufacturer that supplies

danson company is a chemical manufacturer that supplies various products to industrial users. the company plans to

  During 2011 lavina corporation had cash and credit sales of

during 2011 lavina corporation had cash and credit sales of 94000 and 91000 respectively. the company also collected

  The accounting records of hercules manufacturing

Refer to the information above. If Retained Earnings at December 31, 2014, is $100,000, Equipment is carried in Hercules Manufacturing, Inc. accounting records at:$42,000.$58,000.$43,500.$345,000.

  Effects of social media on communication in business

This resource is crucial in preparing a paper about business communication, and will be handy to refer to in regard to the effects of social media on communication in business and throughout the realm of management.

  Prepare a forecasted annual income statement for the company

Home Decor Company's management is trying to decide whether to eliminate Department 200, which has produced losses or low profits for several years.

  Identify compensating controls needed for an effective ers

Identify compensating controls needed for an effective ERS system.

  Reconcile the total cost of work in process use rounded

company manufactures plastic storage crates and has the following information available for the month of aprilwork in

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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