ABC Ltd manufactures products to the precise specifications of individual customers in three separate production departments....

Question

Question

ABC Ltd manufactures products to the precise specifications of individual customers in three separate production departments.

Using the information provided above: (1) Prepare in a columnar form a statement showing the overhead cost budgeted for EACH

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

i) Allocation of overhead to production and service departments:

			Production			Service
	Basis	Overhead	Cutting	Machining	Pressing	Stores	Maintenance	Total Allocated
Rent & Rates	Floor area	15000	9000	3750	900	750	600	15000
Machine Insur	Machi value	10000	5000	2000	1750	1000	250	10000
Telephone charges	Floor area	5000	3000	1250	300	250	200	5000
Dep.	Machi value	20000	10000	4000	3500	2000	500	20000
Production super. Salaries	DLHs	25000	6250	12500	6250			25000
Heating/lighting	Floor area	10000	6000	2500	600	500	400	10000
Allocated overhead		85000	39250	26000	13300	4500	1950	85000
Service Deptt. Allocation:
Stores		4500	2250	1350	900			4500
Maintenance		1950	585	390	975			1950
Total Ovehead to Prod. Deptt.			42085	27740	15175
Absorption base	DLHs		1000	2000	1000
Overhead Absorption Rate			42.085	13.87	15.175



ii) Total Cost of the Job:
	Job A	Job B
DM	100	150
Direct Labor: (DLH*DL rate)
Cutting	100	30
Machining	56	112
Pressing	50	50
Production Overhead: (DLH*Oh rate)
Cutting	420.85	126.26
Machining	97.09	194.18
Pressing	151.75	151.75
Total Costs	975.69	814.19

Add a comment

Answer 2

Similar Homework Help Questions

Thank you ABC Ltd manufactures products to the precise specifications of individual customers in three separate...

Thank you ABC Ltd manufactures products to the precise specifications of individual customers in three separate production departments. It also has two service departments. The following overhead costs are predicted to occur during the coming year: Total Rent and rates (£) 15,000 Machine insurance (£) 10,000 Telephone charges () 5,000 Depreciation (£) 20,000 Production supervisors' salaries (£) 25,000 Heating/lighting (E) 10,000 85,000 Details relating to each department are given below: Production Service Total Cutting Machining Pressing Stores Maint- enance Floor...
A furniture making business manufactures quality furniture to customers' orders. It has three production departments and...

A furniture making business manufactures quality furniture to customers' orders. It has three production departments and two service departments. Budgeted overhead costs for the coming year are: Totals £ Rent and Rates 12, 800 21.00 Machine insurance 6,000 2,000 Canteen 3200 6,400 Depreciation 18,000 36000 Production supervisor's salaries Heating and lighting 6,400 2,810 70,400 32.000 The three production departments - A B and C,, and the two service departments - X and V, are housed in the new premises, the...
LILI SDN BHD is a manufacturer and supplier of home cabinets. It has two main Departments...

LILI SDN BHD is a manufacturer and supplier of home cabinets. It has two main Departments that is the Production Department and the Service Department. The Production department has three (3) sub-departments: Machining, Assembly and Finishing. All three departments are labor-intensive. The Service Department has two sub-department which is Maintenance and General Services. Cost Data Production Departments Service Departments Cost Items (RM) Fabrication Assembly Finishing Maintenance Gen.Services Indirect Supplies 3,000 2,500 2,000 1,000 2,500 Indirect Labour 18,000 10,000 8,000 4,500...

Question 3 Blue Ltd a manufacturing business with three production departments and one service department and...

Question 3 Blue Ltd a manufacturing business with three production departments and one service department and has budgeted costs by department as follows: Dept Dept2 Depr3 Stores 320 480 200 Direct labour (£000) 240 280 240 Indirect labour (£000) 320 Production Requisition notes (000's) 120 160 40 Indirect materials (£000) 30,000 30,000 20,000 10,000 Area occupied (sqm) 20 70 10 Use of external maintenance (%) 40 The following additional information is available: • Total external maintenance costs will be £25,000...
a) Kanga Ltd has three production departments and two service departments. The following is their budgeted...

a) Kanga Ltd has three production departments and two service departments. The following is their budgeted factory overheads for the year ended 30 September 2000: Shs. Shs. Production departments 240,000 180,000 220,000 640,000 Service departments X 86,000 44,000 130,000 770,000 The service department costs are to be re-apportioned as per the following percentages: в 20 30 35 - 15 Y 30 30 30 10 - X Required: Re-apportion the service department costs to the production departments using the simultaneous equation...
Bob's Electronics Inc. manufactures high-tech screens for computers. In June, the two production departments had budgeted...

Bob's Electronics Inc. manufactures high-tech screens for computers. In June, the two production departments had budgeted allocation bases of 8,300 machine hours in Department 1 and 5,760 direct manufacturing labour hours in Department 2. The budgeted manufacturing overheads for the month were $32,000 and $27,500, respectively. For Job 101, the actual costs incurred in the two departments were as follows: Department Department 2 Direct materials purchased on account $66,000 $106,500 Direct materials used 12.500 9,100 Direct manufacturing labour 32,500 32,200...

Bob's Electronics Inc. manufactures high-tech screens for computers. In June, the two production departments had budgeted...

Bob's Electronics Inc. manufactures high-tech screens for computers. In June, the two production departments had budgeted allocation bases of 8,400 machine hours in Department 1 and 5,860 direct manufacturing labour hours in Department 2. The budgeted manufacturing overheads for the month were $32,000 and $27,500, respectively. For Job 101, the actual costs incurred in the two departments were as follows: Department 2 $106,500 9,100 Department 1 Direct materials purchased on account $66,000 Direct materials used 12,500 Direct manufacturing labour 32,500...
Bob’s Electronics Inc. manufactures high-tech screens for computers. In June, the two production departments had budgeted...

Bob’s Electronics Inc. manufactures high-tech screens for computers. In June, the two production departments had budgeted allocation bases of 8,200 machine hours in Department 1 and 5,660 direct manufacturing labour hours in Department 2. The budgeted manufacturing overheads for the month were $32,000 and $27,500, respectively. For Job 101, the actual costs incurred in the two departments were as follows: Department 1 Department 2 Direct materials purchased on account $66,000 $106,500 Direct materials used 12,500 9,100 Direct manufacturing labour 32,500...
Gurjinder Electronics Inc. manufactures high-tech screens for computers. In June, the two production departments had budgeted...

Gurjinder Electronics Inc. manufactures high-tech screens for computers. In June, the two production departments had budgeted allocation bases of 80,000 machine hours in Department 1 and 50,000 direct manufacturing labour hours in Department 2. The budgeted manufacturing overheads for the month were $248,000 and $320,000, respectively. For Job 101, the actual costs incurred in the two departments were as follows: Department 1 Department 2 Direct materials purchased on account $63,000 $87,000 Direct materials used 46,800 20,300 Direct manufacturing labour 55,800...

Bob’s Electronics Inc. manufactures high-tech screens for computers. In June, the two production departments had budgeted...

Bob’s Electronics Inc. manufactures high-tech screens for computers. In June, the two production departments had budgeted allocation bases of 8,600 machine hours in Department 1 and 5,970 direct manufacturing labour hours in Department 2. The budgeted manufacturing overheads for the month were $32,000 and $27,500, respectively. For Job 101, the actual costs incurred in the two departments were as follows: Department 1 Department 2 Direct materials purchased on account $66,000 $106,500 Direct materials used 12,500 9,100 Direct manufacturing labour 32,500...

ABC Ltd manufactures products to the precise specifications of individual customers in three separate production departments....

Homework Answers

Add Answer to:
ABC Ltd manufactures products to the precise specifications of individual customers in three separate production departments....

Post as a guest

Earn Coins

Thank you ABC Ltd manufactures products to the precise specifications of individual customers in three separate...

A furniture making business manufactures quality furniture to customers' orders. It has three production departments and...

LILI SDN BHD is a manufacturer and supplier of home cabinets. It has two main Departments...

Question 3 Blue Ltd a manufacturing business with three production departments and one service department and...

a) Kanga Ltd has three production departments and two service departments. The following is their budgeted...

Bob's Electronics Inc. manufactures high-tech screens for computers. In June, the two production departments had budgeted...

Bob's Electronics Inc. manufactures high-tech screens for computers. In June, the two production departments had budgeted...

Bob’s Electronics Inc. manufactures high-tech screens for computers. In June, the two production departments had budgeted...

Gurjinder Electronics Inc. manufactures high-tech screens for computers. In June, the two production departments had budgeted...

Bob’s Electronics Inc. manufactures high-tech screens for computers. In June, the two production departments had budgeted...

ABC Ltd manufactures products to the precise specifications of individual customers in three separate production departments....

Homework Answers

Add Answer to: ABC Ltd manufactures products to the precise specifications of individual customers in three separate production departments....

Post as a guest

Earn Coins

Add Answer to:
ABC Ltd manufactures products to the precise specifications of individual customers in three separate production departments....