I need the answer as soon as possible Chin plywood Sdn Bhd operates with three (3) production cost centres: Cutting, Fixing andFinishing; and two (2) service cost centres, Maintenance and Canteen. The followinginformation relates to the company for year2017:Cost elementRMCuttingFixingFinishingCuttingFixingFinishingCuttingFixingFinishingMaintenance250,000158,000700,00035,00029,0006,000250,000159,00089,00075,00058,00040,000106,00018,00095,00065,000Direct material costOther direct costAllocated overhead costs:CanteenOther overhead costs:PowerDepreciation on machinesProduction supervisor's salariesInsurance of buildingHeat&LightThe following information relates to the above cost centres:Cost centresCutting100Fixing80Finishing40Maintenance Canteen40Power consumption(kilowatt hours)Maintenance service3028,00020,0009,000400hoursMachine HoursDirect labour hoursDirect labour rate perhour22,00010,00011,00018,0009,00012,000RM4RM8RM5Floor area (squaremeter)Book value of machineNo. of employee4,0003,5001,0005001,000RM100,000 RM180,000 RM280,00066352010Required:a)Prepare the overhead analysis sheet to allocate, apportion and reapportion theoverhead costs to each production department. Show your answer to the nearestRinggit Malaysia (RM).

Overhead costs are indirect costs incurred in the organization which do not pertain to any specific…

Answered: Prepare the overhead analysis sheet to…

Prepare the overhead analysis sheet to allocate, apportion and reapportion the overhead costs to each production department. Show your answer to the nearest Ringgit Malaysia (RM).

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...

See similar textbooks

Similar questions

Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Required: 1. Prepare a cost report for the year ending 20x1 that shows value-added costs, non-value-added costs, and total costs for each activity. 2. Explain why expediting products and storing goods are non-value-added activities. 3. What if receiving cost is a step-fixed cost with each step being 1,500 orders whereas assembly cost is a variable cost? What is the implication for reducing the cost of waste for each activity?
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
A manufacturing company has two service and two production departments. Human Resources and Machine Repair are the service departments. The production departments are Grinding and Polishing. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The human resources department services all departments of the company, and its costs are allocated using the numbers of employees within each department, while machine repair costs are allocable to Grinding and Polishing on the basis of machine hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.
Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)
Hang 10 Manufacturers has two service departments, Factory Administration and Maintenance and two producing departments, A and B. Selected information relating to these departments are as follows: Service Departments Producing Departments Factory Administration Maintenance A B Number of employees 30 50 400 550 Total labour hours 4 000 6 000 80 000 120 000 Overhead costs R600 000 R500 000 R1 700 000 R2 400 000 Hang 10 Manufacturers allocates service department costs using the step method. Costs of Factory Administration are allocated on the basis of the number of employees. Costs of Maintenance are allocated on the basis of labour hours. Allocation begins with the Factory Administration Department.
Amalia Ltd currently manufactures and sells four products. Details of these products and relevant information are given below, for one period.Product P1 P2 P3 P4Output (Unit) 240 200 160 240Machine hours 8 6 4 6 (per unit) Cost per unit: Direct material £80 £100 £60 £20Direct labour £56 £42 £28 £42 Production overheads: Indirect material £20,860Indirect labour £10,500Rent £7,200Insurance £4,200Depreciation £9,240 Production overheads are currently absorbed by using a plant-wide rate per machine hour. Required:(a) You have been asked by the financial director to calculate the cost per unit for each product. All overhead costs are absorbed on a machine hour basis (show your workings as full as possible).(b) Compare the traditional…
Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Activity Activity Driver SQ AQ SP Receiving       Receiving orders 13,600     16,500     $24     Assembly       Labor hours 69,000     82,500     17     Expediting       Orders expedited 0     5,500     57     Storing       Number of units 0     11,000     8     Assume that at the beginning of 20x2, Cicleta trained the assembly workers in a new approach that had the objective of increasing the efficiency of the assembly process. Cicleta also began moving toward a JIT purchasing and manufacturing system. When JIT is fully implemented, the demand for expediting is expected to be virtually eliminated. It…
Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Activity Activity Driver SQ AQ SP Receiving       Receiving orders 12,000     18,000     $21     Assembly       Labor hours 75,000     90,000     15     Expediting       Orders expedited 0     6,000     50     Storing       Number of units 0     12,000     7     Assume that at the beginning of 20x2, Cicleta trained the assembly workers in a new approach that had the objective of increasing the efficiency of the assembly process. Cicleta also began moving toward a JIT purchasing and manufacturing system. When JIT is fully implemented, the demand for expediting is expected to be virtually eliminated. It…
Mariah Corporation has provided the following data from its activity-based costing system:                                                          Data concerning one of the company’s products, Product Maxiplus, appear below:                                                                                                Selling price per unit                                P888                   Direct materials cost per unit               250                      Direct labor cost per unit                        180                      Annual unit production and sales        8,000                 Annual machine-hours                            26,000                Annual orders                                             10,000                              Annual inspection-hours                        9,000                  Selling and Administrative expenses are P978,600.                                                                                          The entity used…
DORCAPAT Company Ltd has three production departments, Assembly, Welding and Finishing, and two service departments, Maintenance and Quality Control. The following information is available about overhead costs. Total Assembly Welding Finishing Maintenance Quality Control Indirect labour cost Indirect materials Building rental Building Insurance Equipment insurance Heating and lighting Depreciation GHS 1,053,000 43,500 27,000 60,000 40,000 18,000 75,000 GHS 400,000 10,000 GHS 270,000 9,000 GHS 200,000 11,500 GHS 83,000 6,000 GHS 100,000 7,000 TOTAL 1,316,500 Additional Information: Total Assembly Welding Finishing Maintenance Quality Control Cost of plant/equipment (GHS) 750,000 250,000 200,000 150,000 100,000 50,000 Floor area (square metres) 1,800 500 400 350 250 300 Kilowatt hours (000s) 800 250…
Freezo Proprietary Limited has two support departments, Maintenance Department (MD) and Personnel Department (PD), and two producing departments, P1 and P2. The Maintenance Department costs of 12,163 are allocated on the basis of standard service used. The Personnel Department costs of 3,745 are allocated on the basis of number of employees. The direct costs of Departments P1 and P2 are R9 000 and R15 000, respectively. Data on standard service hours and number of employees are as follows: MD PD P1 P2 Standard service hours 100 50 325 176 Number of employees 10 20 148 101 Direct labour hours 50 50 250 250 Using the direct method, calculate the cost of the support departments allocated to Department P1.
XYZ Ltd. is a manufacturing company that follows the cost allocation approach for overhead allocation. The company uses three cost pools for allocating overhead costs: Material Handling, Machine Maintenance, and Factory Utilities. Each cost pool has its own cost driver. For the current accounting period, the company incurred the following costs and activity levels: Material Handling Costs: $150,000 Cost Driver: Number of Material Orders - 2,500 orders Machine Maintenance Costs: $250,000 Cost Driver: Machine Hours - 10,000 hours Factory Utilities Costs: $200,000 Cost Driver: Direct Labor Hours - 5,000 hours Calculate the overhead allocation rate for each cost pool based on the given information. A) Material Handling: $60 per order, Machine Maintenance: $25 per hour, Factory Utilities: $40 per direct labor hour. B) Material Handling: $30 per order, Machine Maintenance: $25 per hour, Factory Utilities: $40 per direct labor hour. C) Material Handling: $60 per order, Machine…