文档介绍：e(s) covered 1 and 2
Assessment task instructions
Question 1
Jamieson Tech Ltd is a pany. The following is an extract from their budgeted information for the year after overhead costs have been apportioned to the relevant production department:
Department
Overheads
Labour Hours
Machine Hours
A
£240,000
60,000
-
B
£280,000
90,000
14,000
The following information relates to Overhead costs:
(a) Within each department, Production Overheads are absorbed on the following basis:
Department A — Labour Hour Rate
Department B — Machine Hour Rate
(b) Administration Overheads are 10% of Prime Cost
(c) Selling and Distribution Overheads are 10% of Production Cost
pany has received an order for a job — reference number: 35/TGB. Specific details are as follows:
(i) The job will require two types of Direct Materials –Material V and Material Z – as follows:
100 kg of Material V @ £8/kg 80 kg of Material Z @ £12/kg
(ii) The job will require the following Direct Labour:
Department A — 100 hours @ £ per hour Department
B — 110 hours @ £ per hour
(iii) In Department B, the order will require 80 hours’ machine time
(iv) For this specific job, pany will have to hire a special machine — the cost of this hire is £400
(v) pany requires a profit margin of 20% on this job
You are required to: Prepare an Operating Statement for the job, u