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.
Answer question D
Assume that Swifty has identified three activity cost pools.
Q1. Prepare a Flexible budget for overheads on the basis of the following data. Ascertain the overhead rates at 70% and 80% capacity. Variable Overheads (60% capacity) Indirect Material = Rs. 6,000 Labour Rs. 18,000 Semi-variable overheads: Electricity (40% fixed) = Rs. 40,000 Repairs (80% fixed) = Rs. 2,400 Fixed Overheads: Depreciation Rs. 16,500 = Insurance = Rs. 4,500 Salaries= Rs. 20,000 Estimated Labour Hours 15,000 hrs = E