Poshey enterprise had the following predetermined overhead rates for its three departments which produces delicious package stew for the local market targeting mainly students on tertiary...

Poshey enterprise had the following predetermined overhead rates for its three departments
which produces delicious package stew for the local market targeting mainly students on
tertiary institutions, bachelors, and spinsters. The predetermined rates are as follows:
Kitchen - 15% of direct labour cost
Packaging - GHc 15.00 per machine hour
Dispatch - GHc 10.00 per direct labour hour
The cost sheet for order number 007 is stated below:
Kitchen Packaging Dispatch
Direct Materials (GHc) 25,000 10,000 2,000
Direct Labour: 200hrs@GHc35 80hrs@GHc30 40hrs@GHc25
Machine hours - 160 -
You are required to compute the price quoted for order number 007 if Poshey Enterprise desire
profit on sales at 25%.

Extracted text: QUESTION TWO Poshey enterprise had the following predetermined overhead rates for its three departments which produces delicious package stew for the local market targeting mainly students on tertiary institutions, bachelors, and spinsters. The predetermined rates are as follows: Kitchen 15% of direct labour cost Packaging GHc 15.00 per machine hour Dispatch GHc 10.00 per direct labour hour The cost sheet for order number 007 is stated below: Kitchen Packaging Dispatch Direct Materials (GHc) 25,000 10,000 2,000 Direct Labour: 200hrs@GHC35 80hrs@GHC30 40hrs@GHC25 Machine hours 160 You are required to compute the price quoted for order number 007 if Poshey Enterprise desire profit on sales at 25%. (20 Marks)