Indirect cost allocationCalculate the overhead surcharges for material, manufacturing & admin based on the followinginformation (numbers in kEUR, unless stated otherwise):Information on direct costsDirect material costs 5,000Direct manufacturing costs 7,500 Information on indirect costsEnergy 2,100Maintenance 500Vehicles 360Material 240Manufacturing 1,200Admin 750 Information on cost allocationEnergy 15,000 MWh manufacturing, 3,500 MWh maintenance, 1500 MWh material, 1,000 MWh admin Maintenance 5 hrs vehicles, 35 hrs manufacturing, 5 hrs material, 5 hrs adminVehicles 3 cars material, 6 cars manufacturing, 21 cars admin

Financial And Managerial Accounting
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ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter27: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 18E: Cost of quality and value-added/non-value-added reports for a service company A. Using the...
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Indirect cost allocation
Calculate the overhead surcharges for material, manufacturing & admin based on the following
information (numbers in kEUR, unless stated otherwise):
Information on direct costs
Direct material costs 5,000
Direct manufacturing costs 7,500

Information on indirect costs
Energy 2,100
Maintenance 500
Vehicles 360
Material 240
Manufacturing 1,200
Admin 750

Information on cost allocation
Energy 15,000 MWh manufacturing, 3,500 MWh maintenance, 1500 MWh material,

1,000 MWh admin

Maintenance 5 hrs vehicles, 35 hrs manufacturing, 5 hrs material, 5 hrs admin
Vehicles 3 cars material, 6 cars manufacturing, 21 cars admin

 

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