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.
Q. Is it possible to execute fca in the deficiency of a general ledger accounting system ? Ans. Yes. FCA can be executed for whichever solid waste management system and whi
PROFIT VARIANCES Sales variances are important as they have a direct bearing on profits earned by the organization. thus, they can be used as the basis of determining profit
Elite Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $300,000 cost with an expected four-year life a
A company is evaluating the following lease or buy option. A four year lease with annual payments of $25,000 payable at the beginning of the year.The tax shield is available at
Prepare answers to each of the following questions. Assume a tax rate of 30%. (i) Harry Ltd has a balance of prepaid rent in the balance sheet amounting to $100 000 as at 30 Ju
Single Limiting Factor Where a single limiting factor exists for the decision making sequence may be implemented given as:- - Compute the contribution per unit of limiting
METHODS OF COSTING : 1. Job costing : Job costing is the essential costing technique appropriate to those industries somewhere the work consist of separate contracts, or batch
The gross earnings of the factory workers for Vargas Company during the month of January are $66,000. The employer's payroll taxes for the factory payroll are 8,000. The fringe ben
10% of the finished castings were to be defective in manufacture and were rectified by expenditure of additional works overhead charges to the extent of 20% on the proportionate di
Tony Allan Inc is a small manufacturer of metal products in Toronto. The company rents its factory building. It uses a job order costing system because it has a wide variety of p
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