BamBam Enterprise is a Company that manufactures and sells XY product. Each product must pass through...
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BamBam Enterprise is a Company that manufactures and sells XY product. Each product must pass through 3 manufacturing processes: A, B and C. Apart from the manufacturing departments, BamBam Enterprise also has two service departments, namely store and canteen. The company's cost accountant has provided the following data to prepare the overhead analysis sheet. Costs Direct Material Direct Labour Allocated Overheads Indirect Wages Indirect Materials Rent & Rates Water & Utilities Depreciation Of Plant & Machinery Insurance Of Plant & Machinery Insurance on factory building Power Supervisor Salaries Total Process Process Process Store A C B 773,400 423,400 225,400 372,000 3,000 58,500 5,000 138,500 25,000 128,800 72,000 129,650 45,000 22,000 145,000 220,000 108,000 32,000 23,000 632,000 227,400 1,500 2,000 3,000 1,200 30,000 15,000 32,000 23,000 15,000 Canteen 3,500 5,500 3,450 The following information relates to the above cost centers: Process A Floor area Book value of machine Horsepower No of employees Machine hours ii. Required: i. 4,000 RM100,000 100 40 22,000 7,000 Direct Labour hours Direct Labour cost Material Handling (%) 20% 225,400 Process B 3,000 RM60,000 80 55 10,500 11,000 372,000 40% Process C 3,200 RM55,000 80 53 7,000 9,500 a. Process A: Machine hours b. c. 227,400 20% Store Canteen Total 1,000 30 5 Process B: Direct Labour hours Process C: Direct Labour hours (show your answer to two (2) decimal places) 10% 800 30 6 10% 12,000 215,000 320 159 Prepare an overhead analysis sheet showing the basis for apportionment made. Use Repeated Distribution Method for Reapportionment. (Answers are to be stated to the nearest RM) 39,500 27,500 824,800 100% Calculate the single/blanket overhead absorption rate if the company uses direct labour cost as its bases (show your answer to two (2) decimal places). Calculate the departmental overhead absorption rate (OAR) using the following basis: iv. The actual results from the production cost centers for the year are as follows: Process A Process B Process C Production overhead Direct material costs Machine hours Direct labour hours RM352,000 RM250,000 16,000 9,000 RM254,000 RM180,000 12,500 13,000 RM152,000 RM195,000 10,000 10,000 Calculate the over or under-absorption of overhead using departmental rate (as calculated in iii). BamBam Enterprise is a Company that manufactures and sells XY product. Each product must pass through 3 manufacturing processes: A, B and C. Apart from the manufacturing departments, BamBam Enterprise also has two service departments, namely store and canteen. The company's cost accountant has provided the following data to prepare the overhead analysis sheet. Costs Direct Material Direct Labour Allocated Overheads Indirect Wages Indirect Materials Rent & Rates Water & Utilities Depreciation Of Plant & Machinery Insurance Of Plant & Machinery Insurance on factory building Power Supervisor Salaries Total Process Process Process Store A C B 773,400 423,400 225,400 372,000 3,000 58,500 5,000 138,500 25,000 128,800 72,000 129,650 45,000 22,000 145,000 220,000 108,000 32,000 23,000 632,000 227,400 1,500 2,000 3,000 1,200 30,000 15,000 32,000 23,000 15,000 Canteen 3,500 5,500 3,450 The following information relates to the above cost centers: Process A Floor area Book value of machine Horsepower No of employees Machine hours ii. Required: i. 4,000 RM100,000 100 40 22,000 7,000 Direct Labour hours Direct Labour cost Material Handling (%) 20% 225,400 Process B 3,000 RM60,000 80 55 10,500 11,000 372,000 40% Process C 3,200 RM55,000 80 53 7,000 9,500 a. Process A: Machine hours b. c. 227,400 20% Store Canteen Total 1,000 30 5 Process B: Direct Labour hours Process C: Direct Labour hours (show your answer to two (2) decimal places) 10% 800 30 6 10% 12,000 215,000 320 159 Prepare an overhead analysis sheet showing the basis for apportionment made. Use Repeated Distribution Method for Reapportionment. (Answers are to be stated to the nearest RM) 39,500 27,500 824,800 100% Calculate the single/blanket overhead absorption rate if the company uses direct labour cost as its bases (show your answer to two (2) decimal places). Calculate the departmental overhead absorption rate (OAR) using the following basis: iv. The actual results from the production cost centers for the year are as follows: Process A Process B Process C Production overhead Direct material costs Machine hours Direct labour hours RM352,000 RM250,000 16,000 9,000 RM254,000 RM180,000 12,500 13,000 RM152,000 RM195,000 10,000 10,000 Calculate the over or under-absorption of overhead using departmental rate (as calculated in iii).
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To calculate the singleblanket overhead absorption rate using the direct labor cost as the basis you need to divide the total overhead costs by the total direct labor cost SingleBlanket Overhead Absor... View the full 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:
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