(b) Question 1 Tika Bhd has three production departments, Dept A, B, C, and service department canteen for workers. Each job must go through all the three departments. Overheads for forth coming moth is as follows: (a) Allocated Overhead Maintenance cost: Common cost Rental Depreciation Supervision costs Dept A Dept B Dept Canteen Required: Dept A Dept B Dept C Canteen Information related to all departments given as follows: Machine Machinery Floor Area hours value 20,000 RM12,000 15,000 RM10,000 5,000 RM 3,000 nil nil (m²) 5,000 RM 1,000 2,000 2,500 500 6,000 3,000 1,000 Depreciation Supervision costs Canteen cost (reallocation) 12,000 2,400 4,000 No. of Operators 30 50 20 nil Prepare an overhead analysis sheet using the apportionment method below to assign the common cost: Rental Floor area Machine value No of operators No of operators Note: All calculation must be to the nearest RM (No decimal point) Calculate departmental overhead absorption rates based on machine hours. Note: All calculation must be to the nearest 2 decimal point
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Question 1
Tika Bhd has three production departments, Dept A, B, C, and service department
canteen for workers. Each job must go through all the three departments. Overheads
for forth coming moth is as follows:
(a)
Allocated Overhead
Maintenance cost:
Common cost
Rental
Depreciation
Supervision costs
Dept A
Dept B
Dept
Canteen
Required:
Dept A
Dept B
Dept C
Canteen
Information related to all departments given as follows:
Machine Machinery Floor Area
hours
value
20,000
RM12,000
15,000 RM10,000
5,000
RM 3,000
nil
nil
(m²)
5,000
RM
1,000
2,000
2,500
500
6,000
3,000
1,000
Depreciation
Supervision costs
Canteen cost (reallocation)
12,000
2,400
4,000
No. of
Operators
30
50
20
nil
Prepare an overhead analysis sheet using the apportionment method below to
assign the common cost:
Rental
Floor area
Machine value
No of operators
No of operators
Note: All calculation must be to the nearest RM (No decimal point)
Calculate departmental overhead absorption rates based on machine hours.
Note: All calculation must be to the nearest 2 decimal point"
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