Overheads are absorbed in Assembly and Finishing departments on a Labour hour basis; and in Machining...

 

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Overheads are absorbed in Assembly and Finishing departments on a Labour hour basis; and in Machining department they are absorbed on a Machine Hour basis. It has been estimated that service departments usage is as follows: Machining 55% 40% Assembly 20% 30% Machine hours 45 5 4 Finishing Stores 5% 20% 20% Maintenance Stores Required: (a) Prepare a schedule of overheads costs to be charged to production departments Machining, Assembly and Finishing. (work to the nearest Cent) (b) Calculate the overhead absorption rates for departments Machining, and Finishing for the forthcoming period. (work to the nearest Cent) (6 marks) (c) Prepare a quotation for job K64 to be commenced next period, assuming it has: Direct material Costing $240 Direct labour Costing $150 and requires: Machining department Assembly department Finishing department and that profit is 20% of selling price. Maintenance Labour hours 10 15 12 10% (12 marks) Assembly 4/5 Overheads are absorbed in Assembly and Finishing departments on a Labour hour basis; and in Machining department they are absorbed on a Machine Hour basis. It has been estimated that service departments usage is as follows: Machining 55% 40% Assembly 20% 30% Machine hours 45 5 4 Finishing Stores 5% 20% 20% Maintenance Stores Required: (a) Prepare a schedule of overheads costs to be charged to production departments Machining, Assembly and Finishing. (work to the nearest Cent) (b) Calculate the overhead absorption rates for departments Machining, and Finishing for the forthcoming period. (work to the nearest Cent) (6 marks) (c) Prepare a quotation for job K64 to be commenced next period, assuming it has: Direct material Costing $240 Direct labour Costing $150 and requires: Machining department Assembly department Finishing department and that profit is 20% of selling price. Maintenance Labour hours 10 15 12 10% (12 marks) Assembly 4/5

Answer rating: 100% (QA)

Requirementa Overhead cost Allocation of Stores overhead in the ratio of 40302010 Total Allocation o... View the full answer