Cost Accounting ~ Overhheas Absorption

Question

ABC Ltd has two production departments (machining and assembly) and two service departments (maintenance and stores). The overhead absorption rates for year 2003 were calculated from following budgeted data:

Maching Assembly

Total overhead $15,642 $35,820

Machine hours 1,738 753

Direct labour hours 2,670 38,600

更新:

The following are actual data for year 2003:

Total Maching Assembly Maintenance Stores

Indirect Labour 28,700 6,116 17,690 1,350 3,544

Light and heat 3,460

更新 2:

Canteen 5,160

Rent and rates 7,600

Equipment depreciation 21,600

更新 3:

Maching Assembly Maintenance Stores

Floor area(square metres) 1,560 760 351 1,209

Number of employees 56,320 13,200 10,560 7,920

Book value of equipment($) 4,800 4,320 480

更新 4:

Number of material requisitions 1,290 210

Manitenance hours 4,267 753

Machine hours 2,816 32,384

Direct labour hours

更新 5:

Prepare a table showing the total actual overhead borne by machining and assembly for 2003. In this table, you should show clearly how to apportion the overhead items to the 4 departments and apportion the overheads of the 2 service departments to machining and assembly.

更新 6:

我唔係好識點做,可以教下我嗎?

Answer 1

最愛解答

Just for reference:

Total

Maching

Assembly

Maintenance

Stores

Indirect Labour

28,700

6,116

17,690

1,350

3,544

Light and heat apportioned by floor area

3,460

1,391

678

313

1,078

Canteen apportioned by no. of employees

5,160

3,302

774

619

464

Rent and rates apportioned by floor area

7,600

3,056

1,489

688

2,368

Equipment depreciation apportioned by book value of equipment

21,600

10,800

9,720

1,080

　

Sub-total

　

　

　

4,050

7,455

Maintenance apporioned by maintenance hours

　

3,442

607

　

　

Stores apportioned by machine hours

　

596

6,858

　

　

　

28,704

37,816