Shudents are perminted to bring the following items to theie desks: Pens Pendls

Question

Shudents are perminted to bring the following items to theie desks: Pens Pendls Ruler Geometry Set 1D Card, Examinetion Cand instructions to Students: This paper has 4 pages and 3 questions. Students are reminded that the examiners will take into account the proper use of the English Language in determining the mark for each response Section A Answer All Questions 1 Ash Furnishing manufactures quality furniture to order. There are three produ roduction while departments and two service department. Department A is machine intensive departments B & C are labour intensive. Budgeted overhead s are as follows Rent & Rates Machine Insurance Telephone charges Depreciation 12,800 6,000 3,200 18,000 Production supervisors salaries 24,000 Heating & Lighting 6,400

Explanation / Answer

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.

1. Overhead budget cost for each department Particulars Base for allocation Total A B C X Y Allocated Overheads 7,800 3,250 1875 1275 800 600 Other Overehads: Rent and Rates Floor Area 12800 6000 3600 1200 1200 800 Machine Insurance Machine Value 6000 3000 1250 1000 500 250 Telephone Charge Floor Area 3200 1500 900 300 300 200 Depreciation Machine Value 18000 9000 3750 3000 1500 750 Production supervision salaries Floor Area 24000 11250 6750 2250 2250 1500 Heating and lighting Floor Area 6400 3000 1800 600 600 400 Total 78,200 37,000 19,925 9,625 7,150 4,500 Reapportionment: X: 50,25,25 0 3575 1788 1787.5 -7150 Y: 20,30,50 0 900 1350 2250 -4500 Total Overhead after reapportionment 78,200 41,475 23,063 13,663 0 0 Working-1 Floor Area 6400 3000 1800 600 600 400 Machine Value 48 24 10 8 4 2 2. Overhead Absorption rate Department A B C Total Overhead 41,475 23,063 13,663 Base Machine Hour Labor Hour Labor Hour Machine Hour 6400 Labor Hour 1800 1000 Overhead Absorption rate                                 6.48                   12.81           13.66 3. Application Department A B C Machine Hour 6000 Labour Hour 4000 2000 Absorption rate (From -2 above)                                 6.48                   12.81           13.66 A Budgeted OVH (Hour*Rate) 38883 51250 27325 B Actual Overhead 41600 22500 19740 B-A Overapplied/(under applied)                               2,717               -28,750         -7,585

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.