00:01
Hello students, here is a question.
00:02
A furniture making business manufacture quality of a furniture to the customer orders.
00:07
It has a three production department a, b and c which have overhead or the absorption rate that is 12 .86, rm 12 .40 and rm 14 .03 respectively.
00:20
So, two pieces of furnitures are being manufactured to the customer.
00:23
Direct cost are followed to job xyz and the material of rm 154, rm 108 direct labour.
00:31
So, 20 hours are department a, 16 hours for department, 8 hours for department b, 8 hours for department c, 14 hours for department.
00:44
A labour rate has been given in the question.
00:46
So, based on this we need to calculate the total cost of each job.
00:51
So, this is our question.
00:52
Let us discuss the answer for this.
00:54
So, first we need to calculate the direct labour cost.
00:57
Calculate the direct labour cost.
01:06
So, to calculate the direct labour cost we have a formula that department a has 20 hours.
01:17
So, that is we have to multiply all this.
01:21
So, it is 50, 50 is equal to 42 department c that is a 10 hours into rme 40.
01:33
So, which gives us rm 3 .40 which gives us 34 job.
01:43
So, m1o department a has 16 hours into 3 .80 which is 60 .80 rm and for department b it is 10 hours into 50, sorry 3 .50, 10 hours into 3 .50 which is 35 department rm department and for department c it is 14 hours into 3 .40 which gives us 47 .60.
02:25
So, now we will calculate the overhead cost...
