Good Line Enterprise has Maintenance and Canteen Departments that support the four production departments. Details of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Good Line Enterprise has Maintenance and Canteen Departments that support the four production departments. Details of total overheads for the first quarter of 2021 are provided below: Maintenance Canteen GH¢ Department A B C D GH¢ GH¢ GH¢ GH¢ GH¢ Overheads 6,200 5,000 4,800 6,500 4,200 3,600 The service departments costs are shared as follows based on the benefits derived. Department A B C D Maintenance Canteen Maintenance 15% 25% 20% 30% 10% Canteen 20% 20% 35% 10% 15% Required: (a) Compute the total overheads for each of the production departments after the apportionment of the service department costs. (b) Explain over and under absorbed overheads indicating the effect of each on gross profit. (c) Mention and explain two (2) merits and two (2) demerits of using pre-determined overheads absorption rate to determine the cost of a product. Good Line Enterprise has Maintenance and Canteen Departments that support the four production departments. Details of total overheads for the first quarter of 2021 are provided below: Maintenance Canteen GH¢ Department A B C D GH¢ GH¢ GH¢ GH¢ GH¢ Overheads 6,200 5,000 4,800 6,500 4,200 3,600 The service departments costs are shared as follows based on the benefits derived. Department A B C D Maintenance Canteen Maintenance 15% 25% 20% 30% 10% Canteen 20% 20% 35% 10% 15% Required: (a) Compute the total overheads for each of the production departments after the apportionment of the service department costs. (b) Explain over and under absorbed overheads indicating the effect of each on gross profit. (c) Mention and explain two (2) merits and two (2) demerits of using pre-determined overheads absorption rate to determine the cost of a product.
Expert Answer:
Answer rating: 100% (QA)
Answer Step by Step Explanation a The total overheads of two service departments will be determined as follows Let M stand for maintenance overheads a... View the full answer
Related Book For
Financial Accounting Information For Decisions
ISBN: 978-0324672701
6th Edition
Authors: Robert w Ingram, Thomas L Albright
Posted Date:
Students also viewed these accounting questions
-
The reaction: 4A + 3B 1 2C + D is studied. Unknown masses of the reactants were mixed. After a reaction time of 1 hour the analysis of the mixture showed 2 kmol of A, 1 kmol of B and 4 kmol of C....
-
Find the best alternative using incremental IRR analysis. A B D Initial cost $2000 4000 5000 3000 Annual benefit 800 1300 500 400 Salvage value 1400 2000 1500 3000 Life, in years 6 4 MARR required 6%...
-
1. [10] Let A = 2 4 a b c d e f g h i 3 5, B = 2 4 d + 5g e+ 5h f+ 5i a 2g b 2h c 2i g h i 3 5, C = 2 4 2g 2h 2i 3d 3e 3f 1a 1b 1c 3 5. Suppose that det A = 5. Find det B = , det C = , and det (AC) =
-
Give the three ways to eliminate the balance in the overhead account at the end of the year.
-
Describe the additional factors that affect global supply chains.
-
For each X-Y data set (n = 12): (a) Make a scatter plot. (b) Find the sample correlation coefficient. (c) Is there a linear relationship between X and Y? If so, describe it. Data Set (a) X 64.7 25.9...
-
How might a general manager transfer goals into action?
-
Suppose after submitting your sealed bid in a Vickrey auction you find out that you have lost the auction (you were not the highest bidder); however, you have the opportunity to revise your bid....
-
With respect to insurance premiums, which of the following amounts would Nor be deductible in the determination of business income? A . Life insurance on the life of the sole proprietor B . House...
-
A division of your company purchased a large quantity of new desktop computers during the current fiscal year. An internal audit manager has asked you to audit the process used to acquire the...
-
The bank forecasts the following one - year interest rates one and two years in the future: 3 . 8 0 % and 4 . 2 0 % . The current three - year interest rate is 4 . 2 0 % . Estimate the current one -...
-
Compare and contrast where situational leadership and authentic leadership conflict and where they are similar. Conclude how you would apply situational leadership to improve the performance of...
-
Identify specific components of performance-management systems policies and procedures, self-audits, benchmarking, complaint management, corrective or preventive action, education and training,...
-
1. There are five levels {P, Q, R, S, T) in a linear supply chain before a product reaches customers, as shown in the figure. P Q R S T Customers At each of the five levels, the price of the product...
-
Explain how a policies and procedures manual guides the work of an agency's branch manager and all staff. The answer should explain: What is the purpose of the manual for staff? Why is a policies and...
-
Explain how TikTok changed the way businesses communicate with their customers. Bring an example of a Canadian business for your reference.
-
What type of alliance should we form? Contractual Alliance. Joint Venture. Tamara
-
When a company has a contract involving multiple performance obligations, how must the company recognize revenue?
-
The General Mills 2002 Annual Report is reproduced in Appendix B at the end of the text. Required Answer the following questions about the General Mills Report of Management Responsibilities and the...
-
Jill Jones has just established a security alarm maintenance service. She charges $20 per hour per person and is paid by check upon completion of the job. Her expenses are rather lowusually only...
-
How does the use of financial leverage affect the risk and return of a company?
-
How should the sample company decide which capital projects to fund?
-
How can a general manager defend discretionary projects that may appear to shareholders to be perks?
-
What role does cash play in the restructuring of a company through acquisitions and divestitures?
Study smarter with the SolutionInn App