A company has two product cost centres: the Moulding Department and the Cutting Department. Details of each cost centre are as follows: Moulding Department Cutting Total Department 21,600 Total Overhead Costs, £ Total direct machine hours 23,520 45,120 5,600 7,200 12,800 The company uses direct machine hours as a basis for absorbing overheads in each product cost centre and rounds the overhead absorption rate to one decimal point. If product A spends 4 hours in the moulding department and 9 hours in the cutting department what is the overhead cost for one unit of product A? O a. £16.80 O b. £45.50 O c. £49.80 O d. £43.80
A company has two product cost centres: the Moulding Department and the Cutting Department. Details of each cost centre are as follows: Moulding Department Cutting Total Department 21,600 Total Overhead Costs, £ Total direct machine hours 23,520 45,120 5,600 7,200 12,800 The company uses direct machine hours as a basis for absorbing overheads in each product cost centre and rounds the overhead absorption rate to one decimal point. If product A spends 4 hours in the moulding department and 9 hours in the cutting department what is the overhead cost for one unit of product A? O a. £16.80 O b. £45.50 O c. £49.80 O d. £43.80
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...
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q1
![A company has two product cost centres: the Moulding Department and the Cutting Department. Details
of each cost centre are as follows:
Moulding
Cutting
Total
Department Department
Total Overhead Costs, £
Total direct machine hours
23,520
21,600
45,120
5,600
7,200
12,800
The company uses direct machine hours as a basis for absorbing overheads in each product cost centre
and rounds the overhead absorption rate to one decimal point.
If product A spends 4 hours in the moulding department and 9 hours in the cutting department what is
the overhead cost for one unit of product A?
O a. £16.80
O b. £45.50
O c. £49.80
O d. £43.80](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54792c48-fb19-415d-9525-ae4aac89279c%2F73beb705-16a5-4b66-b623-db44f7e542f1%2Fuh44kb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A company has two product cost centres: the Moulding Department and the Cutting Department. Details
of each cost centre are as follows:
Moulding
Cutting
Total
Department Department
Total Overhead Costs, £
Total direct machine hours
23,520
21,600
45,120
5,600
7,200
12,800
The company uses direct machine hours as a basis for absorbing overheads in each product cost centre
and rounds the overhead absorption rate to one decimal point.
If product A spends 4 hours in the moulding department and 9 hours in the cutting department what is
the overhead cost for one unit of product A?
O a. £16.80
O b. £45.50
O c. £49.80
O d. £43.80
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