Overheads Overhead apportionment DW Ltd. has 5 production cost centres. The overhead incurred in a particular...

   

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Overheads Overhead apportionment DW Ltd. has 5 production cost centres. The overhead incurred in a particular period was: $ $ Indirect materials: Production cost centre 1 Production cost centre 2 Production cost centre 3 Production cost centre 4 Production cost centre 5 Indirect wages: Production cost centre 1 Production cost centre 2 Production cost centre 3 Production cost centre 4 Production cost centre 5 Maintenance. Power Rent Heat & light Building insurance Depreciation of machinery Supervision The following additional information is available: Cost centre Effective H.P. Area (sq. ft.) Maintenance hours 1 2000 2 3400 3 2400 4 1600 5 1400 40 25 10 20 5 800 1000 200 1500 500 100 10800 Prepare the overhead analysis sheet. 4000 1990 1200 1280 970 260 20450 26450 14680 28500 15820 Cost of Machinery 20000 40000 10000 25000 5000 100000 5700 105900 5400 1400 4800 800 400 16000 9600 150000 No. of workers 20 30 10 40 20 120 Overhead absorption The following data for a cost centre are available: • Budgeted production overhead: $30000 • Budgeted output in units: 2000 • Budgeted total machine hours: 15000 • Budgeted total labour hours: 20000 • Budgeted direct materials cost: $10000 • Budgeted direct wages cost: $30000 During the period, Job 123 was produced at the following costs: Direct material cost Direct wages cost (12 labour hours) Note: 6 machine hours were used. a) Direct materials cost percentage rate b) Direct wages cost percentage rate c) Prime cost percentage rate $ 680 d) Machine hour rate e) Direct labour hour rate f) Cost unit rate 8 Calculate the overhead absorption rate and the overhead absorbed in Job 123 using: 20 28 Overheads Overhead apportionment DW Ltd. has 5 production cost centres. The overhead incurred in a particular period was: $ $ Indirect materials: Production cost centre 1 Production cost centre 2 Production cost centre 3 Production cost centre 4 Production cost centre 5 Indirect wages: Production cost centre 1 Production cost centre 2 Production cost centre 3 Production cost centre 4 Production cost centre 5 Maintenance. Power Rent Heat & light Building insurance Depreciation of machinery Supervision The following additional information is available: Cost centre Effective H.P. Area (sq. ft.) Maintenance hours 1 2000 2 3400 3 2400 4 1600 5 1400 40 25 10 20 5 800 1000 200 1500 500 100 10800 Prepare the overhead analysis sheet. 4000 1990 1200 1280 970 260 20450 26450 14680 28500 15820 Cost of Machinery 20000 40000 10000 25000 5000 100000 5700 105900 5400 1400 4800 800 400 16000 9600 150000 No. of workers 20 30 10 40 20 120 Overhead absorption The following data for a cost centre are available: • Budgeted production overhead: $30000 • Budgeted output in units: 2000 • Budgeted total machine hours: 15000 • Budgeted total labour hours: 20000 • Budgeted direct materials cost: $10000 • Budgeted direct wages cost: $30000 During the period, Job 123 was produced at the following costs: Direct material cost Direct wages cost (12 labour hours) Note: 6 machine hours were used. a) Direct materials cost percentage rate b) Direct wages cost percentage rate c) Prime cost percentage rate $ 680 d) Machine hour rate e) Direct labour hour rate f) Cost unit rate 8 Calculate the overhead absorption rate and the overhead absorbed in Job 123 using: 20 28

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a Direct materials cost percentage rate 30000 10000 300 b Dir... View the full answer