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Problem: Biotechnologies Unlimited, Inc. (BUI), located in Sydney, Nova Scotia, is a small but growing biotech quality analysis organization that tests pesticides before they are used by farmers. The testing procedures are specific to the individual pesticides used because reagents used for testing react differently based on their composition and the quantity used. How they are introduced into the pesticides for testing is also important.
During the month of December 2016, it completed one job (reference number: KS 2016-337); records pertaining to this job are as follows:
Date
Document
Amount
2/12/16
M-3316
$890
4/12/16
L-4423
230
11/12/16
L-4437
530
13/12/16
M-3399
1,750
20/12/16
M-3407
200
22/12/16
L-4509
700
The documents with the references M and L pertain to direct materials and direct labour, respectively. BUI currently allocates overhead using direct labour cost as the allocation base. For the year 2016, it estimated $590,000 as the overhead amount and $472,000 for direct labour costs.
Required:
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