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Handy Headphones is an Irish company that is manufacturing lightweight, flexible, Bluetooth[1] enabled and waterproof headphones. It is proving to be

October 19, 2024

Handy Headphones is an Irish company that is manufacturing lightweight, flexible, Bluetooth[1] enabled and waterproof headphones. It is proving to be very popular among people wanting to listen to music in the shower or while swimming on holiday or at community leisure centers lane swimming sessions (mainly because of their 159 price tag). Before the headphones can be delivered to the warehouse for distribution, they pass through a five[1]stage production process.The headphones start in the molding department and work their way through the wiring department, IT department, and polishing department and, finally, the packaging department. As well as these five production departments, there are two other non-production departments within this factory.These two service departments are the canteen and the maintenance department. All employees who work in this factory have the benefit of eating at the subsidized canteen. The maintenance department is responsible for the general maintenance and repairing of the machinery within the whole factory. Handy currently make 2,500 headphones. The forecast figures for the Handy Headphones for 2020 are as follows:Factory rent140,000Re-decorating of moulding department20,000Electricity cost30,000Depreciation of machinery5,000Direct materials24,000Direct labour skilled workers20,000Direct labour unskilled workers26,000Direct expenses10,000Training for IT department staff6,500Packaging department floor resurfacing3,000New machinery for maintenance department23,500Canteen redesign55,000The departmental specifications are provided below:MouldingWiringITPolishingPackagingMaintenanceCanteenTotalArea (m)1,00080055065070060703,830Machine value ()20,0004,00055,00038,00023,000-20,000160,000Number of staff10401261220100Practical task Use a spreadsheet to complete the following task: 1 You are a newly appointed cost accountant for Handy Headphones and you are curious to know what the total cost per headphone is working out at. You need to analyze the overhead costs, how they are allocated, apportioned and reapportioned as there may be some changes made by the management accountant based on your findings. The management accountant would also like to know how all these costs would be shown on the standard cost card.

Accounting

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Handy Headphones is an Irish company that is manufacturing lightweight, flexible, Bluetooth[1] enabled and waterproof headphones. It is proving to be