Following are the set of case studies of different manufacturing companiesYou are required to read and understand the information carefully and then attemptthe Questions provided at the end.
Case # 1
Mark Philips Ltd Company that carried out jobbing work. One of the jobs carried out in Februarywas Job # 13000, to which the following information relates.
Direct material Y 400 kilos issued from stores at a cost of Rs.5 per kiloDirect material Z800 kilos issued from stores at a cost of Rs.6 per kilo and 60 kilos returned to store,A further 20 kilos were damaged and treated as abnormal lossDepartment P 300 hours of labor@ Rs.4 per hourDepartment Q 200 hours of labor@ Rs.5 per hourDepartment P had to carry out Rectification works, which took 20 hours in normaltime. These 20 hours are additional to the 300 hours above. This rectification work is normal for a job such as job # 13000, and since it was expected, is included indirect costs of the job.Overhead is absorbed at the rate of Rs.3 per direct labor hour in both departments.
Read the above case study carefully and write down the correct optionnumber (e-g A, B, C, D) in the given Excel file.
What was the direct material cost of job # 13000?A.
What was the direct labor cost of job # 13000?A.
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