The following information is available for the two production departments, machining and assembly, and one service department, the canteen: Machining Assembly Budgeted overheads £15,000 £20,000 Number of staff 30 20 Canteen £5,500 5 After reapportionment of the service cost centre costs, what will be the overhead cost of the machining department cost centre? A. £3,300 B. £17,750 C. £18,000 D. £18,300

The following information is available for the two production departments, machining and assembly, and one service department, the canteen: Machining Assembly Budgeted overheads £15,000 £20,000 Number of staff 30 20 Canteen £5,500 5 After reapportionment of the service cost centre costs, what will be the overhead cost of the machining department cost centre? A. £3,300 B. £17,750 C. £18,000 D. £18,300

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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Required information Use the following information for the Quick Studies below. (Algo) Rafner Manufacturing has the following budgeted data for its two production departments. Budgeted Data Overhead cost Direct labor hours Machine hours $ 1,358,900 Assembly 12,700 direct labor hours. 6,700 machine hours The departmental overhead rate for Assembly QS 17-7 (Algo) Computing departmental overhead rates LO P2 What is the Assembly department overhead rate using direct labor hours? What is the Finishing department overhead rate using machine hours? The departmental overhead rate for Finishing $ 1,068,800 Finishing 20,700 direct labor ho 16,700 machine hours
Difference A company has numerous products and currently absorbs its production overheads based on labour hours; it has the following information: G H All products Budget (units) 2,400 3,000 Labour hours (£10/ hour) 1 hour 0.2 hours 1,000,000 Material cost / unit £2.00 £3.50 Material requisitions 4 8 4,000 Number of batches 6 3 10,000 Overheads are budgeted as £2,500,000 for production set-up related and £1,200,000 for materials handling and storage related. Required: Calculate the unit cost for products G and H if the company was to adopt activity based costing and comment on the difference.
STEP DOWN METHOD Furnishing manufacturing company total overheads allocated and apportioned to the production and service departments as follows: Assembly $55,000 Finishing 34,000 Maintenance 32,000 Canteen 15,600 A suitable basis for sharing out the maintenance costs is the time spent servicing equipment. The amount of time spent by the maintenance department servicing equipment in the Assembly and Finishing department has been analyses as follows: Assembly 60% Finishing 40% The Canteen department’s overheads are to be reapportioned on the basis of the number of employees in the other three departments. Number of employees: Assembly 20, finishing 35, Maintenance 15, Canteen 5. You are required to: reapportion the overhead expenses to the production from the service department.
JPS CC collected the following statistics in order to allocate their overheads among the various departments: Cost items Production A Production B Service C Value of equipment N$ 15 000 N$ 9 000 N$ 6 000 Number of employees 36 24 20 Floor space 400m^2 300m^2 200m^2 Material used N$ 40 000 N$ 30 000 N$ 5 000 Direct labour hours 1 300 700 905 Machine hours 450 305 195 the following amounts represent the budgeted overheads for 2019: Depreciation on equipment 900 Rent of factor building 2 250 Electricity factory 900 Protective clothing 800 Cafeteria 720 Insurance building 450 Insurance machinery 750 Overhead allocation rates are based on labour hours, while the secondary apportionment of the service department takes place according to machine hours. Required: (a) Calculate the overhead analysis of each of the two production departments for 2003 (b) Calculate the absorption rate for the production departments. (c) What causes under/over absorption rates.
Factory rent of £20,000 and supervisor costs of £10,000 are to be apportioned to production cost centres (Assembly and Finishing). Using the information below state an appropriate amount in total to be apportioned to the Assembly department. Assembly Finishing Number of staff 60 40 Cost of machinery (£) 50,000 150,000 2.000 Floor area occupied (m2) 3,000 O A. £15,000 O B. £18,000 O C. £20,000 O D. £7,500
Answer question D
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Fun Bakery has three shops in town Total Budgeted overhead Units produced Per unit Direct materials Direct wages You are required to calculate for each department: a) The absorption rate per unit b) Cost per unit Shop 1 € 250 € € Shop 2 40.000 € 365 25.000 € 60.000 € 10.000 Shop 3 € 423 35.000 € 40.000 € 25.000 14.000 80.000
Assume that Swifty has identified three activity cost pools.
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