Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Three of the cost items that are included in the production overhead for a factory for a period are:
Machine maintenance labour
$33,600
Power
$26,000
Rent and rates
$39,800
Production overheads are currently absorbed using a single factory-wide rate.
It has been suggested that a separate overhead absorption rate should be calculated for each of the three groups of machines in the factory. The following additional budgeted data has been collected for the period:
Machine Group
Total
MG1
MG2
MG3
Floor area (m2)
1,600
1,400
1,000
4,000
Machine values (
320
250
230
800
Kilowatt hours ('000)
220
110
440
Machine maintenance (labour hours)
600
400
Number of indirect workers
4
2
10
Machine hours
8,200
5,600
4,900
18,700
Required
(b) Briefly explain one reason why a separate overhead absorption rate for each machine group would be preferable to a single factory-wide rate.
(c) Apportion each of the three items of budgeted overhead cost (machine maintenance labour, power and rent and rates) to the three machine groups.
The totals of all budgeted production overhead cost items, allocated and apportioned to the three machine groups, are as follows:
$129,560
$107,520
$119,070
(c) Calculate an appropriate absorption rate for each machine group.
(d) Calculate the production overhead that would be charged to job 121which requires five hours on MG1 machines two hours on MG2 machines and three hours on MG3 machines.
Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4 Variable costs are those
(i) In terms of cashflow, which month will be the most costly for your project? (ii) If the 3rd and 4th months are more expensive by 25% each because the outsourced labour took
During the dinner hour, the distribution of the inter-arrival time of customers at Burger Barn is predictable to be as follows: Inter-arrival Time Probabi
Ordering cost is incurred whenever the inventory is replenished. It includes costs associated with the processing and chasing of the purchase order transportation, inspec
advantage of physical measure
Required Ledgers in Financial System In the financial Systems the Required ledgers are as: The General Ledger Debtors Ledger Creditors Ledger
BEP- Break Event Point: It shows no Loss and no Profit The level of activity at which, total revenues equivalent total costs. A point at which there is no profit and no loss.
Example of Flexible and Fixed Budget A company has budgeted to produce and sell 100,000 units of cakes throughout the next period. The selling price per cake is Sh. 20 and var
The following data relate to three joint products: A B C
Important Points Regarding to the Variance Analysis Variance reporting concentrates on both with favourable and unfavourable variances. Normally unfavourable variances are pun
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd