Cake Manufacturers Ltd completes a range of jobs for customers. The budgeted production overhead costs for...
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Cake Manufacturers Ltd completes a range of jobs for customers. The budgeted production overhead costs for the next year are: Cost Allocated Overheads: Manufacturing Dept. 1 64800 Manufacturing Dept. 2 58400 Service Dept. 1 24800 Service Dept. 2 25700 Other Overheads: Indirect labour 64000 Heat and light 97200 Repairs and maintenance 69400 Salaries of Works Management 10200 Depreciation of Plant and Machinery 20800 Insurance of Plant and Machinery 12500 The further additional data is available: Manufacturing Dept. 1 Floor space 5000 Manufacturing Cept. 2 8000 Service Dept. 13ervice Dept. 2 2000 1000 Joccupied (sq. m.) Direct labour hours 50000 4000 Indirect labour 60000 10000 hours Direct labour rate 12 8 par hour Number of staff 60 10 Machina hours 5000 150000 Machine value 80000 400000 20000 The Service Departments support the manufacturing departments only. The reapportionment percentages for Manufacturing Dept 1. are 30% for Service Dept. 1 and 60% for Service Dept. 2. REQUIREMENTS: (a) Prepare a statement showing the overhead cost for each department (include the basis of apportionment and workings). 14 marks (b) Calculate a suitable overhead absorption rate for each manufacturing department, explaining why each is appropriate. PART B 3 marks Four staff work for a week in a hotel. They are paid 11/hour basic rate, time and a half on weekdays for hours worked in excess of 8 hours/day, and double time for all hours worked at the weekend. They work the following hours from Monday to Sunday. Mon Tues Wed Thu Fri Sat Sun Kyle 12 10 8 12 10 12 12 Dave 99 9 966 Bert 12 10 B Ajay 8 8 19 12 106 8 12 999 REQUIREMENTS: (a) Calculate how much each member of staff is paid during weekdays and at the weekend, showing the overtime premium separately, and determine the total amount paid to the four employees. marks 8 Cake Manufacturers Ltd completes a range of jobs for customers. The budgeted production overhead costs for the next year are: Cost Allocated Overheads: Manufacturing Dept. 1 64800 Manufacturing Dept. 2 58400 Service Dept. 1 24800 Service Dept. 2 25700 Other Overheads: Indirect labour 64000 Heat and light 97200 Repairs and maintenance 69400 Salaries of Works Management 10200 Depreciation of Plant and Machinery 20800 Insurance of Plant and Machinery 12500 The further additional data is available: Manufacturing Dept. 1 Floor space 5000 Manufacturing Cept. 2 8000 Service Dept. 13ervice Dept. 2 2000 1000 Joccupied (sq. m.) Direct labour hours 50000 4000 Indirect labour 60000 10000 hours Direct labour rate 12 8 par hour Number of staff 60 10 Machina hours 5000 150000 Machine value 80000 400000 20000 The Service Departments support the manufacturing departments only. The reapportionment percentages for Manufacturing Dept 1. are 30% for Service Dept. 1 and 60% for Service Dept. 2. REQUIREMENTS: (a) Prepare a statement showing the overhead cost for each department (include the basis of apportionment and workings). 14 marks (b) Calculate a suitable overhead absorption rate for each manufacturing department, explaining why each is appropriate. PART B 3 marks Four staff work for a week in a hotel. They are paid 11/hour basic rate, time and a half on weekdays for hours worked in excess of 8 hours/day, and double time for all hours worked at the weekend. They work the following hours from Monday to Sunday. Mon Tues Wed Thu Fri Sat Sun Kyle 12 10 8 12 10 12 12 Dave 99 9 966 Bert 12 10 B Ajay 8 8 19 12 106 8 12 999 REQUIREMENTS: (a) Calculate how much each member of staff is paid during weekdays and at the weekend, showing the overtime premium separately, and determine the total amount paid to the four employees. marks 8
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a Statement showing the overhead cost for each department Manufacturing Dept 1 Manufacturing Dept 2 ... View the full answer
Related Book For
Cost Management Measuring Monitoring And Motivating Performance
ISBN: 9781118168875
2nd Canadian Edition
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook
Posted Date:
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