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Mathematics, 09.12.2021 17:30 asdf334asdf334
Hekima Lid, produces three producis namely: X, Y and Z. The budgeted production costs and selling prices for the first quarter in year 2013 aie as follows:
Direct materials ($per Unit) :X240 Y 160 Z 120
Direct wages: Department 1: ($ 10 per hour per unit) X 3 hrs Y 5 hrs Z 2.5 hrs
Department 2: ($20 per hour per unit) X 3 hours Y 8hrs Z 6hrs
Budgeted production units X 10,000 Y 12,000 Z 20,000
Maximum sales units X 12,000 Y 16,000 Z 24,000
Selling price per unit ($). X 750 Y1, 050 Z 600
Additional information:
1. Variable overheads are recovered at a rate of 100% and 50% of direct wages in departments 1 and 2 respectively.
2. Fixed overheads amount to $ 5,000,000 per annum
3. Direct labour hours in department 1 are in short supply and the budgeled volume of output envisages full utilisation of the available direct labour hours.
4. In department 2, the company has committed to engage the workers to the extent of the direct hours required for the budgeted volume of production,
5. In the event a product mix change is desired, the company will engige additional direct labour hours required in department 2 at normal rates. Any such surplus labour Houts will be paid as idle time wages. Required:
A statement of budgeted profitability
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Hekima Lid, produces three producis namely: X, Y and Z. The budgeted production costs and selling pr...
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