A company has three production departments (X, Y and Z) in its factory. After completion of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A company has three production departments (X, Y and Z) in its factory. After completion of all overhead allocation and apportionment, the production department budgets for the year 2016 included the following: Overhead costs Direct labour hours Machine hours Overhead costs Direct labour hours Machine hours Required: (a) (b) X (c) K5,124,000 K8,712,000 4,200 5,280 A predetermined overhead absorption rate is established for each production department each year. Actual data for January 2016 included: Department Y X K441,000 340 Department Y K719,000 Z 426 K6,681,600 11,520 Z K561,000 985 Calculate, from the data provided, an appropriate predetermined overhead absorption rate for each production department for 2016. 6 marks Calculate the amount of the over/under absorption of overhead in January in each production department and in total for the factory. Suggest two general causes of overhead under absorption. 11 marks 3 marks A company has three production departments (X, Y and Z) in its factory. After completion of all overhead allocation and apportionment, the production department budgets for the year 2016 included the following: Overhead costs Direct labour hours Machine hours Overhead costs Direct labour hours Machine hours Required: (a) (b) X (c) K5,124,000 K8,712,000 4,200 5,280 A predetermined overhead absorption rate is established for each production department each year. Actual data for January 2016 included: Department Y X K441,000 340 Department Y K719,000 Z 426 K6,681,600 11,520 Z K561,000 985 Calculate, from the data provided, an appropriate predetermined overhead absorption rate for each production department for 2016. 6 marks Calculate the amount of the over/under absorption of overhead in January in each production department and in total for the factory. Suggest two general causes of overhead under absorption. 11 marks 3 marks
Expert Answer:
Related Book For
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
Posted Date:
Students also viewed these accounting questions
-
The Road Runner Club contributes money to Senator Sly's reelection campaign fund, and Senator Sly helps pass legislation to add more jogging paths across the state. From this we can definitively...
-
A company has three machines that require maintenance attention. Four criteria are used to prioritize these machines to determine the order in which they will be serviced. The criteria are cost of...
-
A company has three appliance stores that sell washers, dryers, and ranges. Matrices W and R give the wholesale and retail prices of these items, respectively. Matrices N and D give the quantities of...
-
Which of the below is the correct order of the consumption process? Question 2 options: Awareness; Thinking; Planning; Implementation/Action; Evaluation Evaluation; Thinking; Planning;...
-
Using the new break- even point in Problem S5.7, what is the payback period?
-
A bank pays a stated annual interest rate of 8 percent. What is the effective annual rate using the following types of compounding? A. Quarterly. B. Monthly. C. Continuous.
-
What is a membrane potential?
-
Recording Adjusting Entries and Reporting Balances in Financial Statements Aubrae Company is making adjusting entries for the year ended December 31, 2011. In developing information for the adjusting...
-
Boom Ltd is an audit firm and has budgeted costs incurred for 2023 of R5 234 770. Their total estimated productive audit hours that they worked on audit clients for 2023 are 4780, made up of Zoom Ltd...
-
Jamie Lee Jackson, age 26, is in her last semester of college and is anxiously waiting for graduation day that is just around the corner! She still works part-time as a bakery clerk, has been...
-
(a) (b) Convert the following octal number to binary number: 6348 (i) Convert the following binary number to octal number: (i) 110 011 1002 (i) (c) Given that the equation is y=x+2. the following...
-
Convert the following quantities to the indicated units. 20 squarekilometers to square miles 20 square kilometers =____ square mile(s) USCS Metric Conversions USCS to Metric 1 in 2.540 cm 1 ft...
-
79. Prove that if p is a prime number and r is an integer with () 0
-
What is the gravitational force between two 15 kg packages that are 35 cm apart? Explain.
-
Enumerate three distinct stakeholder cohorts impacted by the unethical behavior exhibited by Enron's leadership. Subsequently, analyze the ramifications experienced by each group as a result of this...
-
Determine whether f(x)=-5x^(2)-10x+6 has a maximum or a minimum value. Find that value and explain how you know.
-
Mary purchased a 1/3 interest in partnership for $500 cash. What is Jane's intial outside basis and the balance to her capital account at the time of purchase? In the absence of a Section 754...
-
Problem 3.5 (4 points). We will prove, in steps, that rank (L) = rank(LT) for any LE Rnxm (a) Prove that rank (L) = rank (LTL). (Hint: use Problem 3.4.) (b) Use part (a) to deduce that that rank(L) =...
-
Shadyside Insurance Company manages a medical insurance program for its clients. Employees of client firms submit claims for reimbursement of medical expenses. Shadyside processes these claims,...
-
Sales variance analysis Bakery Extraordinaire sells several types of muffins and scones and also sells carrot bread loaves. Planned prices and sales quantities for February are shown here: The actual...
-
What are the three components of a linear program?
-
Go to https://www.youtube.com/watch?v=Fp9m4GNwGng to view a brief video on the Brazilian Jet manufacturer Embraer and their use of Critical Chain Project Management for maintenance services. How has...
-
It is sometimes argued that state revenue generated by lotteries is different from tax revenue because people choose to buy lottery tickets. Compare three state revenue sources cigarette excise...
-
Suppose that the demand for personalized license plates and the marginal cost of production in a state is as shown in Figure 16.1. If all the profits go to the government and the state wants to...
Study smarter with the SolutionInn App