Question

Hello, I would like to receive help with following question,
I hope you can help!
Maria

Zhra Manufacturing Company has two​ departments, machining and finishing. For a given​ period, the following costs were incurred by the company as a​ whole: direct​material, £350,000. direct​ labour, £105,000 and indirect​ production, £40,000. The grand total was £495,000. The machining department incurred 70% of the​direct-material costs, but only 20% of the​ direct-labour costs. As is​ commonplace, indirect production costs incurred by each department were allocated to products in proportion to the​ direct-labour costs of products within the departments. Three products were produced.

Product	Direct Material	Direct Labour
Sigma	30%	30%
Chi	10%	10%
Delta	60%	60%
Total for machining department	100%	100%
Sigma	30%	20%
Chi	30%	30%
Delta	40%	50%
Total for finishing department	100%	100%

The indirect production costs incurred by the machining and finishing departments and allocated to all products therein amounted to​ machining, £22,000 and​ finishing, £18,000.

Requirement 1. Compute the total costs incurred by the machining department and added by the finishing department.

		Machining		Finishing		Total
Direct materials	€		€		€
Direct labour
Indirect production
Total	€		€		€

Thank you!

Answer 1

	Machining	Finishing	Total
Direct materials	245000	105000	350000
Direct labour	21000	84000	105000
Indirect production	22000	18000	40000
Total	288000	207000	495000
Formulas used:
	Machining	Finishing
Direct materials	=350000*70%	=350000*30%
Direct labour	=105000*20%	=105000*80%