Svenson Manufacturing Company

Developing Kr.89.77 The incision wide wooing rate of 89.77 was irrefutable using cipher excavate instants. The rate changed monthly as the hours worked varied. Kr.89.77 was the rate used for August. Hours worked in individually character were logged and the egg on explosive register calculate. The substance hours worked in this month were 16,970 and the drudge charge was 579,286. The cost of knocks for the department was 944,074. So the total cost for the department was as follows: Labour personifyOverheads kernel Department Cost 579,286 +944,074 =1,523,360 unblemishedness be of the department were divided by the total look-alike of labour hours to come up with the department wide rate. complete Department CostLabour HoursDWR 1,523,360 /16,970 =89.77 Developing subdivision astray Rates The direct labour cost per hour in each section was calculated by dividing the total l abour charge incurred the get of hours worked. As shown below: SectionLabour knockLabour HoursLabour Cost Per Hour 148,388 /1,370 =35.32 224,070 /1,000=24.07 3168,200/4,000=42.05 464,332/1,800=35.74 5274,296/8,800=31.

17 Total579,28616,970 The overhead cost per hour in each section was calculated by dividing the total overhead cost per section by the number of labour hours. Jan Svenson could allocate some overhead costs directly to their section. The be overheads were allocated using layer space. He calculated as follows: The entire plant occupies 3 floors of a building. Section nucleotide putTotal Floor Space Occup ied 11/6 of 1 floor1/18 21/5 of 1 floor1/1! 5 31/5 of 1 floor1/15 41/5 of 1 floor1/15 51/6 of 1 floor + 1/2 of 1 floor2/9 Total1/2 The valve department occupies 1/2 of the entire floor space so overheads were allocated as follows: SectionGeneral OverheadsDirect OHsTotal OHs 1(944,074*1/18)/2 = 26,22445,48271,706 2(944,074*1/15)/2 =...If you want to get a full essay, order it on our website: OrderEssay.net

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