QUESTION 1: ORION LTD The following information has been taken from the budget for the forthcoming financia. year: Direct materials cost £1495,000 Direct materials usage 65,000kg Direct labour cost cS60,000 Direct labour time 32,000 hrs Maintenance £340,000 Depreciation £260,000 Rent £400,000 Indirect Materials £56,000 Indirect Labour c84,000 Other indirect costs £166,000 Machine time 12,000 hrs All direct labour is paid the same hourly rate. Currently, Orion Ltd has Project X which has the folowing cost Raw materials 4,200 kg Direct labour hours 1.350 hours Machine hours 350 hours Required: A. Calculate overhead absorption rate (OAR) using direct labour and machine hour basis ( B. B. Prepare full costing for Project X separately using machine hour baais a well as direct labour.hour basis in the allocation of total overheads

QUESTION 1: ORION LTD The following information has been taken from the budget for the forthcoming financia. year: Direct materials cost £1495,000 Direct materials usage 65,000kg Direct labour cost cS60,000 Direct labour time 32,000 hrs Maintenance £340,000 Depreciation £260,000 Rent £400,000 Indirect Materials £56,000 Indirect Labour c84,000 Other indirect costs £166,000 Machine time 12,000 hrs All direct labour is paid the same hourly rate. Currently, Orion Ltd has Project X which has the folowing cost Raw materials 4,200 kg Direct labour hours 1.350 hours Machine hours 350 hours Required: A. Calculate overhead absorption rate (OAR) using direct labour and machine hour basis ( B. B. Prepare full costing for Project X separately using machine hour baais a well as direct labour.hour basis in the allocation of total overheads

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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