17.A factory in London processes turkeys for sale. The production process is classifiedinto four cost centres and the budget for each of the cost centre is as follows:Indirect labourConsumablesHeating & lightingRent and ratesDepreciationSupervisionPowerThe following information is also available:Labour hoursMachine hoursFloor space (sq metres)Book value of machinery ($)No. of employeesKilowatt hoursDirect materials ($)Direct labour ($)Maintenance hoursRequired:(a)TotalS340,000 120,000Cutting Cooking$S140,00082,000 24,000 32,00024,00036,00060,000(b)48,00040,000630,000(c)Total16020,000Canteen MaintenanceS30,000 50,00020,000 6,000Cutting Cooking Canteen Maintenance10,0006,00020,000 40,00010101,0002,00060,000 20,000 24,000600,000 300,000240,000809,000100,00050,0008,00012,64010,300608,00050,00042,0006,0008,40015,700Draw up a suitable columnar form and distribute the budgeted overhead costsover the four cost centres, using appropriate bases.Reapportion the accumulated costs of the two service centres over the twoproduction cost centres using suitable bases.Use appropriate bases to calculate the overhead absorption rates for eachproduction department.

Name: 17.A factory in London processes turkeys for sale. The production pro
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: 17.A factory in London processes turkeys for sale. The production process is classifiedinto four cost centres and the budget for each of the cost centre is as follows:Indirect labourConsumablesHeating & lightingRent and ratesDepreciationSupervisionP

Discription Total Cutting Cooking Canteen Maintance Kilowatt. Hours 20000 9000 8000 1000 2000…

Answered: Draw up a suitable columnar form and…

Business

Accounting

Draw up a suitable columnar form and distribute the budgeted overhead costs over the four cost centres, using appropriate bases..

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

State the difference between Standard costing & Budgetary control. Give your analysis with 5 points differences?
What is the measured mile approach used for?a. Calculate budget spentb. Measure office overheadc. Calculate loss of productivityd. Measure unit costs on site
4.1 Determined the correct formula to calculate the predetermined overhead absorption rate (OAR). Budgeted total overhead divided by actual total number of units of absorption base Budgeted total overhead divided by budgeted total number of units of absorption base Actual total overhead divided by actual total number of units of absorption base Actual total overhead divided by budgeted total number of units of absorption base
The format of the direct materials budget is similar to that of the: Group of answer choices Factory overhead budget. Sales budget. Production budget. Direct labor budget.
How to allocate indirect costs to multiple departments using an ABC cost driver?
Please briefly describe (1) the three main differences between the traditional overhead allocation system and the activity-based costing (ABC) overhead allocation system, and (2) which allocation system you prefer to use.
Prepare a direct materials budget for silicon and solution, and a direct labor budget.
Which of the following cost and cost allocation base have a stronger cause and effect relationship? A) administration costs and cubic feet B) setup costs and square feet C) quality control costs and the number of inspections D) machine maintenance and setup hours
Activity-based costing (ABC) is a costing technique that uses a two-stage allocation process. Which of the following statements best describes these two stages? Multiple Choice Direct costs are allocated to the production departments based on a predetermined overhead rate. The costs are assigned to departments, and then to the products based upon their use of activity resources. The costs are assigned to activities, and then to the products based upon their use of the activities. Indirect costs are assigned to activities, and then to the products based upon the direct cost resources used by the activities.
Explained how the use of an activity-based costing system could change the results of the budget if utilized.
Explain why support costs are allocated to departments.