Following are the overheads allocated to 3 production departments, P1, P2 & P3 and 2 service departments S1 & S2, in respect of ICL Engineering Works Ltd. P1 P2 P3 S1 S2 Allocated Oveheads 25000 20000 15000 5000 3000 Overheads of Service departments S1 & S2 are to be re-apportioned to production departments, P1, P2 & P3 in following ratios: P1 P2 P3 S1 S2 S1 40% 30% 20% ----- 10% S2 30% 40% 25% 5% ----- Required: 1. Apportion service dept. cost to production departments using Repeated Distribution Method. 2. Apportion service dept. cost to production departments using Simultaneous Equation Method

Q: Compute conversion costs given the following data: direct materials, $394,600; direct labor,…

A: The costs are classified as direct materials and conversion costs.  The conversion costs comprises…

Q: Complete (assume $100,000 of overhead to be distributed): (Round your "Ratios" answers to the…

A: Given, Total estimated overhead = $100,000 Square feet of Department A = 25,000 Square feet of…

Q: In using FIFO method, Cruz Company produces a product that undergoes three processes and the…

A: No. of equivalent units   Actual  units ( Material) Equivalent units (Material) Actual…

Q: Refer to the information given. For each of the activity cost pools identified,indicate whether it…

A: Indicate whether it represents the unit level, batch level, product-sustaining level or facility…

Q: Virgin River Inc. produces horse and rancher equipment. Costs from Support Department 1 are…

A:

Q: 5. Summer Company produces two types of products: A and B. Both are produced on the same assembly…

A: Total direct labor hours = 20000 + 35000 = 55000 Total machine hours = 6000+15000 = 21000

Q: What is the total costs of work in process at December 31, 2021 in Department C? P40,932.58…

A: The concept of costs of work in process refers to the entire costs incurred by partially finished…

Q: 13. HHWW Company produces two types of products: A and B. Both are produced on the same assembly…

A: Total direct labor hours = 20000 + 35000 = 55000 Total machine hours = 6000+15000 = 21000

Q: E1-15 (Algo) Calculating Missing Amounts [LO 1-4] For each of the following independent cases (A to…

A: 1. Prime cost is a combination of direct material and direct labor2. Conversion cost is combination…

Q: Conversion charges consist of: (1.5 Points) b. direct substances + manufacturing overhead. c. direct…

A: The answer is option (b).

Q: Vista Company has gathere following information. All materials are added at the beginning of the…

A: Equivalent Production is representing the production of a process in terms of completed units. In…

Q: Department W had 2,220 units, one-third completed at the beginning of the period; 12,300 units were…

A: Process costing is used in an organization where a similar kind of product is produced and goods are…

Q: Compute conversion costs given the following data: direct materials, $363,200; direct labor,…

A: Lets understand the basics.conversion cost is a cost of converting raw material into finished…

Q: Get Hitched Inc. is a production company that is in the process of testing a strategic initiative…

A: Gross Profit Gross profit is the gross margin which is net sales after deducting cost of goods sold.

Q: Compute conversion costs given the following data: direct materials, $350,600; direct labor,…

A: Conversion cost includes those expenses which are incurred to convert raw material into finished…

Q: Costs incurred: Materials Direct Labor Overhead Total Materials are added at Units…

A: The total cost of producing a product, including raw materials and operating costs, is detailed in a…

Q: Required: 1. Compute a departmental overhead rate for the Molding department based on machine hours…

A: Departmental overhead rate is used to allocate the departmental overheads to the product(s).This can…

Q: Compute conversion costs given the following data: direct materials, $394,300; direct labor,…

A: The conversion costs comprise direct labor and overhead costs. the indirect costs are recorded as…

Q: what is the total costs transferred from Department B to Department C? P1,821,600 P1,031,900…

A: A manufacturing concern involved in producing a bulk quantity of homogeneous products uses Process…

Q: 18. Production overheads allocated and apportioned to cost centres in a factory for a period, along…

A: The overheads are incurred with respect to production and service departments. The service…

Q: First-stage allocation of overhead costs to the activity cost pools: Overhead costs Installing…

A: The image outlines the allocation of overhead costs to activity cost pools, determination of…

Q: Activity Cost Pool Maintenance Materials Handling Setups Inspection Order processing Customer…

A: The activity costing method is used to apply overhead cost to different activities on the basis of…

Q: 1. Calculate the activity rate for each activity pool. 2. Determine the amount of overhead assigned…

A: Calculation of the Activity Rate         Activity Rate=Cost     Total Activity       Material…

Q: Compute conversion costs given the following data: Direct Materials, $389,900; Direct Labor,…

A: Conversion Costs: Conversion costs are the sum of direct labour costs and manufacturing overhead…

Q: Compute conversion costs given the following data: direct materials, $359,700; direct labor,…

A: Direct material cost is the cost of raw material produced or purchased to produce the final…

Q: 7. At the beginning of the year, a company estimates total direct materials costs of $1,940,000 and…

A: Predetermined OH Rates :— A predetermined overhead rate is calculated at the start of the accounting…

Q: what is the equivalent unit of production of materials and conversion, respectively, under process…

A: Equivalent units of products concept came in to existence when some units are not fully completed at…

Q: Complete (assume $50,000 of overhead to be distributed): (Round your "Ratio"answers to the nearest…

A: Overhead refers to the costs or expenses involved in the production of goods but such costs cannot…

Q: SA (Pty) Ltd manufactures a single product. The product process consists of two production…

A: The cost of various departments is allocated to other departments using various percentage methods.

Q: n the manufacture of 9,800 units of a product, direct materials cost incurred was $174,800, direct…

A: Conversion cost is the manufacturing cost incurred to covert the raw material into the finished…

Q: 38. A company has two production cost centres and two service cost centres. Production overheads…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: (b) Question 1 Tika Bhd has three production departments, Dept A, B, C, and service department…

A: Activity based costing is used to allocate overhead allocation. This is simplest method of overhead…

Q: The following data relates to departments A, B, and C of a company; machine hours! e 1500hours,…

A: Overhead cost for department A= Allocated rent expense (based on floor space) +allocated…

Q: Under process 2, what is the equivalent unit of production on materials and conversion,…

A: Equivalent units of products concept came in to existence when some units are not fully completed at…

Q: Compute conversion costs given the following data: direct materials, $353,000; direct labor,…

A: The costs incurred for the production can be classified as Direct and indirect cost. The conversion…

Q: E1-10 (Algo) Calculating Missing Amounts [LO 1-4] For each of the following independent cases (A…

A: Prime cost is the sum of direct material and direct labor costs incurred in manufacturing of a…

Q: The following data relates to departments A, B, and C of a company; machine hours: department A-…

A: Overheads are allocated to different departments based on the type of activities of the respective…

Q: ServicePro provides two kinds of services. During the most recent accounting period, the two service…

A: Sunk Cost :— It is the cost that are already incurred in past and now irrecoverable.    Financial…

Q: Jasola Company uses direct method in allocating service department costs to producing Exercise 5-11…

A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base…

Q: Refer to the following data to answer the question: Direct material used Selling costs Indirect…

A: Lets understand the basics.Prime cost is as name suggest direct costs which are incurred to produce…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.