A firm has three jobs performed in separate production departments: A, B, C and D. The overheads
Question:
A firm has three jobs performed in separate production departments: A, B, C and D. The overheads of the service departments K, L and M are apportioned to the production departments using the percentages shown in the table below.
Required
a. Calculate the OAR for each production department.
b. Calculate the cost of each job.
Transcribed Image Text:
Production departments Service departments A в D K L M Overheads $6 700 $9 100 $11 600 $3 550 $8 000 $5 000 $6 100 Dept K 25% 30% 20% 10% 15% Dept L 60% 30% 10% Dept M 30% 50% 20% Additional information: A в D Direct labour hours 2 000 1 200 4 450 1 850 Machine hours 1 900 2 600 2 900 2 400 Direct labuur rale $2.10 $1.70 $2.40 $2.30 Job 315, Dept A Job 316, Dept B Job 317, Depts C then D Direct materials: $190 Direct materials: $1 199 Direct materials: $660 in C Direct materials: $68 in D 56 direct labour hours 178 direct labour hours 160 drect labour hours in C 30 direct labour hours in D 40 machine hours 176 machine hours 150 machine hours in C 20 machine hours in D
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Related Book For
Accounting For Cambridge International AS And A Level
ISBN: 9780198399711
1st Edition
Authors: Jacqueline Halls Bryan, Peter Hailstone
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