A company is preparing its production overhead budgets and determining the apportionment of those overheads to products. Cost centre expenses and related information have been budgeted as follows. Machine Machine Mainten- Total $ shop B Assembly $ Canteen shop A 2$ 8,586 6,400 ance 2$ 29,650 2$ Indirect wages 78,560 9,190 15,674 15,460 Consumable materials 16,900 8,700 1,200 600 Rent and rates 16,700 Buildings insurance Power 2,400 8,600 Heat and light 3,400 40,200 Depreciation (machinery) Value of machinery 402,000 201,000 179,000 22,000 Power usage (%) Direct labour (hours) Machine usage (hours) Area (sq ft) 100 55 40 2 35,000 8,000 6,200 20,800 25,200 7,200 18,000 45,000 10,000 12,000 15,000 6,000 2,000 Required Using the direct apportionment to production departments method and bases of apportionment which you consider most appropriate from the information provided, calculate overhead totals for the three production departments.
A company is preparing its production overhead budgets and determining the apportionment of those overheads to products. Cost centre expenses and related information have been budgeted as follows. Machine Machine Mainten- Total $ shop B Assembly $ Canteen shop A 2$ 8,586 6,400 ance 2$ 29,650 2$ Indirect wages 78,560 9,190 15,674 15,460 Consumable materials 16,900 8,700 1,200 600 Rent and rates 16,700 Buildings insurance Power 2,400 8,600 Heat and light 3,400 40,200 Depreciation (machinery) Value of machinery 402,000 201,000 179,000 22,000 Power usage (%) Direct labour (hours) Machine usage (hours) Area (sq ft) 100 55 40 2 35,000 8,000 6,200 20,800 25,200 7,200 18,000 45,000 10,000 12,000 15,000 6,000 2,000 Required Using the direct apportionment to production departments method and bases of apportionment which you consider most appropriate from the information provided, calculate overhead totals for the three production departments.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.16E
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