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Question Two Apex Ltd manufactures three productsX, Y and Z in two product ion departments: Pi and Pz. The company also has two service departments: Sı and Sz. The compary's budgeted product ion data and manufacturing costs for the year 2021 were as follows: Product z Product ion (units) Direct materials (Shs. per unit) Direct labour: P: (Shs. per unit) 4,200 6,900 1,700 11 14 17 6. 4 2 P2 (shs. Per unit) 12 3 21 Machine hours per unit 6 3 4 Additional information 1. Absorption rates in depart ments Pı and P2 are based on machine hours and labour wages respectively. 2. Budgeted overheads for rent, heating and lighting amounted to shs.17,000 while depreciation and insurance amounted to shs.25,000. 3. The costs of service departmentSzare apportioned to production departments Pi and P2 at the ratio of 7:3 while the costs of S1 are apportioned to depart ments P., P2 and Sz based on the number of employees. 4. Other information includes: P1 P2 S2 27,660 19,47o 16,600 26,650 Budgeted overheads (Shs.) Equipment at net book value (Shs.) Number of employees Floor area (metres square) 150,000 75,000 30,000 45,000 18 14 4 4 3,600 1,400 1,000 800 Required Budgeted over head absorption rates for the two production depart ments Pı and Pz

Question Two Apex Ltd manufactures three productsX, Y and Z in two product ion departments: Pi and Pz. The company also has two service departments: Sı and Sz. The compary's budgeted product ion data and manufacturing costs for the year 2021 were as follows: Product z Product ion (units) Direct materials (Shs. per unit) Direct labour: P: (Shs. per unit) 4,200 6,900 1,700 11 14 17 6. 4 2 P2 (shs. Per unit) 12 3 21 Machine hours per unit 6 3 4 Additional information 1. Absorption rates in depart ments Pı and P2 are based on machine hours and labour wages respectively. 2. Budgeted overheads for rent, heating and lighting amounted to shs.17,000 while depreciation and insurance amounted to shs.25,000. 3. The costs of service departmentSzare apportioned to production departments Pi and P2 at the ratio of 7:3 while the costs of S1 are apportioned to depart ments P., P2 and Sz based on the number of employees. 4. Other information includes: P1 P2 S2 27,660 19,47o 16,600 26,650 Budgeted overheads (Shs.) Equipment at net book value (Shs.) Number of employees Floor area (metres square) 150,000 75,000 30,000 45,000 18 14 4 4 3,600 1,400 1,000 800 Required Budgeted over head absorption rates for the two production depart ments Pı and Pz

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 1BE: Single plantwide factory overhead rate The total factory overhead for Bardot Marine Company is...
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Question Two Apex Ltd manufactures three products X, Y and Z in two product ion departments; P1 and Pz. The company also has two service departments: Sı and Sz. The company's budgeted product ion data and manufacturing costs for the year 2021 were as f ollows: Product Product ion (units) Direct materials (Shs. per unit) Direct labour: P: (Shs. per unit) 4,200 6,900 1,700 11 14 17 6 4 2 P2 (shs. Per unit) 12 3 21 Machine hours per unit 6 3 4 Additional information 1. Absorpt ion rates in depart ments Pı and Pz are based on machine hours and labour wages respectively. 2. Budgeted overheads for rent, heating and lighting amounted to shs.17,000 while depreciation and ins urance amount ed to shs.25,000, 3. The costs of service department Szare apportioned to production departments Pi and P2 at the ratio of 7:3 while the costs of Si are apportioned to depart ments Pi Pz and Sz based on the number of employees. 4. Other information includes: P1 Pz S. Sz 27,660 19,47o 16,600 26,650 Budgeted overheads (Shs.) Equipment at net book value (Shs.) Number of employees Floor area (metres square) 150,000 75,000 30,000 45,000 18 14 4 4 3,600 1,400 1,000 800 Required Budgeted over head absorption rates for the two production depart ments Pı and Pz
Transcribed Image Text:Question Two Apex Ltd manufactures three products X, Y and Z in two product ion departments; P1 and Pz. The company also has two service departments: Sı and Sz. The company's budgeted product ion data and manufacturing costs for the year 2021 were as f ollows: Product Product ion (units) Direct materials (Shs. per unit) Direct labour: P: (Shs. per unit) 4,200 6,900 1,700 11 14 17 6 4 2 P2 (shs. Per unit) 12 3 21 Machine hours per unit 6 3 4 Additional information 1. Absorpt ion rates in depart ments Pı and Pz are based on machine hours and labour wages respectively. 2. Budgeted overheads for rent, heating and lighting amounted to shs.17,000 while depreciation and ins urance amount ed to shs.25,000, 3. The costs of service department Szare apportioned to production departments Pi and P2 at the ratio of 7:3 while the costs of Si are apportioned to depart ments Pi Pz and Sz based on the number of employees. 4. Other information includes: P1 Pz S. Sz 27,660 19,47o 16,600 26,650 Budgeted overheads (Shs.) Equipment at net book value (Shs.) Number of employees Floor area (metres square) 150,000 75,000 30,000 45,000 18 14 4 4 3,600 1,400 1,000 800 Required Budgeted over head absorption rates for the two production depart ments Pı and Pz
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