A factory consists of two production cost centresP and Q. The total overheads allocated and apportioned to
Question:
- A factory consists of two production cost centresP and Q. The total overheads allocated and apportioned to each centre are as follows:
P. Q. T. V
GH 180,000. GH 120,000. GH 128,000. GH 140,000
The company apportions service cost centre costs to production cost centres using a method that fully recognises any workdone by one service cost centre for another.
What are the total overheads for production cost centre P after the reapportionmentof all service cost centre costs?
A.GH 345,200 B. GH 350,600C. GH 355,000D. GH 226,400
The information below relates to question 7 and 8.
Budget. Actual
Production. 2,500 units. 2,800 units
Fixed production overheads. GH350,000. GH380,000
Sales. 1,900 units. 1,450
Fixed overheads are absorbed on the basis of output:
7. The production overhead absorbed during the period was?
A. GH392,000 B.. GH270,000C.. GH266,000D. GH169,000
8. Production overhead was
A. Under-absorbed by GH30,000B. Under-absorbed by GH12,000
C.Over-absorbed by GH30,000D. Over-absorbed by GH12,000