Reference no: EM132830792
Question - Magnificent Century manufactures ring binders that come in various sizes and can accommodate an array of paper sizes. The binders can also be customized and embossed with the customers' own logo.
The company has been approached to produce a batch of 1,500 binders by an insurance company. The following illustrate the cost for a typical batch of 100 binders:
Cost RM
Direct materials 30.00
Machine set-up 10.00
The followings are additional details related to the job prepared by the production department:
Direct employees are paid on a piecework basis. Magnificent Century pays a piece rate of RM0.30 for each output produced.
Design and art work RM150.00.
Special mold is needed to emboss the client's logo. The cost of the mold is RM500.00. ? Magnificent Century absorbs production overheads at a rate of 20% of direct wages cost.
Selling, distribution and administration overheads is allocated at 10% of total production cost.
Magnificent Century requires a profit margin of 20% of sales value.
Required -
a. Determine the price to be quoted, clearly identifying Prime Cost, Production Cost and Total Cost.
b. Describe three (3) differences between job and batch costing.
|
Advantages of walmart purchasing established web businesses
: What impact is Walmart's acquisition of nontraditional retailers likely to have on the shopping habits of Walmart's customers?
|
|
What is the price of this bond
: Suppose you have the opportunity to buy a bond with a par value of $1,000. Assuming a market rate of 5% (annual), what is the price of this bond
|
|
Leadership in the american workplace
: What forces, people, and events have influenced current attitudes toward leadership in the American workplace?
|
|
How much should the salaries payable would be
: Accounts Payable P50,000, and Owner's Equity of P450,000. Salaries Payable are not recorded. At how much should the salaries payable would be?
|
|
Determine the price to be quoted
: Design and art work RM150.00. Determine the price to be quoted, clearly identifying Prime Cost, Production Cost and Total Cost
|
|
How much is the property plant and equipment
: The Current Assets is P260,000, Current Liabilities P 200,000, Owner's Equity is P450,000. How much is the Property Plant and Equipment?
|
|
Marketing Plans and Customer Satisfaction
: Discuss implementation activities that positively impacted customer satisfaction.
|
|
Implications of not taking account of legislation
: What are the implications of not taking account of legislation, regulations, standards and guidelines when conducting business improvement activities?
|
|
How different aspects of scorecard can be more beneficial
: Describe how different aspects of the scorecard can be more beneficial for some companies rather than others.
|