a) Macquarie College has three service departments - Student Records, Personnel and Computer Services which provide services to the college's teaching departments, Primary Teaching and Secondary Teaching. Macquarie College wishes to determine the full cost of each of the teaching departments to assist in establishing student fees for each course.
Required:
i) Identity the cost objects.
ii) Which are the indirect cost pools?
iii) Suggest a cost driver for each of the indirect cost pools that could be used to assign their costs to the cost objects.
b) Endeavour Enterprises manufactures custom built furniture. The furniture goes through two operations, machining and assembling. Budgeted figures for the financial year ended 30th June 2013 show:

Actual figures for order No 156 in 2008 were:

Endeavour Enterprises uses predetermined overhead rates for applying overhead based on machine hours for the machining department and direct labour cost for the assembling department.
REQUIRED:
i) Calculate the budgeted overhead application rate for the machining department.
ii) Calculate the budgeted overhead application rate for the assembling department.
iii) What is the full cost of order No 156? Show all workings.

Transcribed Image Text:

Machining Assembling Factorv overhead Direct labour costs Machine hours $120 000 S90 000 S45 000 1000 hrs 60 hours $10 000 Machining |Assembling Direct materials used$3600 Direct labour costs $800 S1200 Machine hours 8 hours