(solution) accountancy question

(solution) accountancy question

how to you determine the total amount of manufacturing overhead cost assigned to the java java coffee and the ethiopian coffee during 2013 Question 2 a Document Preview: AC2029 – Management accounting 2- Coursework 1 Aberdeen Beverage Company ABC- 40 different coffee blends. Packed 1kg bags. Roasting, blending and packing process. Coffee is priced at production cost plus mark up of 25%. Year 2013- estimated total overhead cost £3,750,000. Overhead recovery rate is based on direct labour hours- cost total £750,000-62,500 direct labour hours. Based on sales budget and expected raw materials cost, the company will purchase and use £7,500,000 of materials during the year.