Central Medical Clinic (CMC) has two service departments - Bullding Services and Energy. CMC also has...
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Central Medical Clinic (CMC) has two service departments - Bullding Services and Energy. CMC also has three operating departments - Pediatrics, Gerlatrics and Surgery. CMC allocates the Bulding Services department costs on the basis of square metres and the Energy department costs on the basis of kilowatt hours. Pediatrics applies overhead based on the number of children seen. Gerlatrics applies overhead based on the number of senlors seen. Surgery applies overhead based on the number of operations performed. The following table contalns budgeted operating data for the upcoming year. Service Departments Bulding Services Operating Departments Energy $150,000 Pedlatrics Gerlatrics Overhead before allocation Square metres Kilowatt hours $105.000 6.000 5.500 Surgery $350,000 12.000 8,800 $300.000 1,000 $210.000 18.000 7,700 4,000 5.000 10.000 Children 1,000 Senlors 2000 Operations 400 Requlred: Allocate service department costs to the operating departments using the step method. Allocate the Bullding Services department costs first. Calculate the predetermined overhead rate for each operating department. (8 marks) Enter negative numbers using a minus sign. 1. Operating Departments Service Departments Bulding Services Energy $150,000 Pediatrics Gerlatrics $105.000 Surgery $350.000 Overhead before allocation $300,000 $210,000 Total after allocation %24 Predetermined overhead rate On the last day of the month, the operating departments at CMC saw 5 children, 12 senlors, and performed 18 operations. How much overhead would have been applied on the last day to each operating department? (3 marks) 2. Pediatrics Gerlatrics Surgery Overhead applled Central Medical Clinic (CMC) has two service departments - Bullding Services and Energy. CMC also has three operating departments - Pediatrics, Gerlatrics and Surgery. CMC allocates the Bulding Services department costs on the basis of square metres and the Energy department costs on the basis of kilowatt hours. Pediatrics applies overhead based on the number of children seen. Gerlatrics applies overhead based on the number of senlors seen. Surgery applies overhead based on the number of operations performed. The following table contalns budgeted operating data for the upcoming year. Service Departments Bulding Services Operating Departments Energy $150,000 Pedlatrics Gerlatrics Overhead before allocation Square metres Kilowatt hours $105.000 6.000 5.500 Surgery $350,000 12.000 8,800 $300.000 1,000 $210.000 18.000 7,700 4,000 5.000 10.000 Children 1,000 Senlors 2000 Operations 400 Requlred: Allocate service department costs to the operating departments using the step method. Allocate the Bullding Services department costs first. Calculate the predetermined overhead rate for each operating department. (8 marks) Enter negative numbers using a minus sign. 1. Operating Departments Service Departments Bulding Services Energy $150,000 Pediatrics Gerlatrics $105.000 Surgery $350.000 Overhead before allocation $300,000 $210,000 Total after allocation %24 Predetermined overhead rate On the last day of the month, the operating departments at CMC saw 5 children, 12 senlors, and performed 18 operations. How much overhead would have been applied on the last day to each operating department? (3 marks) 2. Pediatrics Gerlatrics Surgery Overhead applled
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Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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