company has two production Cost centers and two service cost centers. The following details have been provided: Total Production cost centers Service cost centers |Assembly Finishing Canteen Maintenance Floor space 10,000 |(Square meters) 6,900 2,400 400 300 |Cubic |сарacity |(Cubic meters) 20,000 15,000 3,000 1,000 1,000 Number of 30 employees 15 3 Direct 4,500 1,040 labour hours Machine 1,500 3,500 hours The overhead costs estimated for the period are as follows: £ Rent | 40,000 Heat and light 10,000 Welfare costs 5,000 Supervisors – Assembly Department 2,500 Supervisors – Finishing Department | 4,000 Machine repair cost 8,000 The work done by the service cost centers for the production cost centers are as follows: [Type text Work done by Assembly Finishing Stores Maintenance Canteen 50% 40% 10% Maintenance 60% 40% 6

company has two production Cost centers and two service cost centers. The following details have been provided: Total Production cost centers Service cost centers |Assembly Finishing Canteen Maintenance Floor space 10,000 |(Square meters) 6,900 2,400 400 300 |Cubic |сарacity |(Cubic meters) 20,000 15,000 3,000 1,000 1,000 Number of 30 employees 15 3 Direct 4,500 1,040 labour hours Machine 1,500 3,500 hours The overhead costs estimated for the period are as follows: £ Rent | 40,000 Heat and light 10,000 Welfare costs 5,000 Supervisors – Assembly Department 2,500 Supervisors – Finishing Department | 4,000 Machine repair cost 8,000 The work done by the service cost centers for the production cost centers are as follows: [Type text Work done by Assembly Finishing Stores Maintenance Canteen 50% 40% 10% Maintenance 60% 40% 6

Name: 2. The total overheads included in the production departments afterre
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Description: 2. The total overheads included in the production departments afterreapportioning the service center costs3. The overhead absorption rate (to 2 decimal points) for each productiondepartment, explaining the reasons for the base that you have used in

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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