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Question 3 (968 23 marks) Felix Pty Ltd uses a job-costing system at its Laverton plant. The plant has a Machining Department and a Finishing Department. Felix uses normal-costing with two direct cost categories: Direct materials, and Direct manufacturing labour And two manufacturing overhead cost pools The machining department, with machine hours as the allocation base, and The finishing department, with direct manufacturing labour costs as the allocation base The 2016 budget for the plant is as follows Manufacturing Overhead Direct Labour Costs Direct Labour Hours Machine Hours Machining Department $2,500,000 $450,000 15,000 50,000 Finishing Department $2,000,000 $1,000,000 80,000 16,500 Required a) During the month of January, the amounts shown on the job cost record below were recorded for Job 29、which consisted of 100 units. Use this information to calculate the cost of Job 29 on a per unit basis (9 marks) Direct Materials used Direct Labour Costs Direct Labour Hours Machine Hours Machining Department $7,000 $300 15 65 Finishing Department $1,500 $625 25

Hi, I want to ge the detailed steps and solutions for question 3 part A, B and C. Please help. Thank u

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Celculation of Standard Cost for Menufacturing Overheads Machining Department Where machine hours is used as an allocation base Amount In $ Machining Department Standard Cost par Hr In the finishing department the allocation base I Direct Manufacturing labour Cost Manufacturing Overheads Standard Cest Job Conisted of 100 Units Amount In S 2000000/1000000 Cost Per Un artmant FinishinE De Direct Material 62S 2 Manufacturing Overheadk Manufactaring Overhead Total Cost Per Unit Cost 1250 10250.00 3375/10 3.73 10.50.53 10s /1433 Cost Per Unit $139.25 b Under or Overebsorption of Cost Alocntion Based on Machine Hours Machine Hours Standard Cost Machine Hours Under Absorpition of Cost Amtin S) 1,10,000.00 55.00,000.00 Finishing Department Amt in $) 39,50,000.00 Diract Manufacturing Labour Cost 20,50,000.00 Standerd Cost based on Actual Over Absorption of Cost In totality for the plant Machining Department 1,50,000.00 Annvt in S) Finishing Departmant Total 1,50,000 50,000 Methods of Under and Overabsorption of Oarheads a Use of Supplementary Rates: If the amount of under or over-abeorption is considerable; the cost of job or process is od usted by meane of supplemencary lew of the owrhead. Supplementary raze is calculated by diiding the amount of under e over abserption by the actual base. Under absorption et rht b the plus rate whle overalporption is acjusted by nus rate The supplementary rate may alsobe calcdlated as a percentage of the amoun absorbed b By Wwiting off to Costing Profit and Loss Account If the amount of under or over-absorptionis small it may be written off to Costing Profit and Loss Account instead of calculotinga supplementary rate by complicated procedure. Undor obcorption due to lde faciities should be written off in this manner whatever the amount may be. Absarption in the Accounts in Subsequent Years The amount of under or over- absorption of overheads may be carried over as deferred charge or deferred credit to the next accounting period by transfering to a Suspenes or Overhead Reserve Account. The use of this method is justified when the neemal business eyele is mare than ane year and in the case of new projects and schames when the pulow in the initial stages af prodaction and cannat bear tha entire share of overheads I will recomment to Charge off the Under/Over absorption to the Cosing Profit and Loss account

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