Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A & b please with steps QUESTION 2 [25] Western Moon Hotel uses a cost accounting system. There are five sections that are used in

image text in transcribed

A & b please with steps

QUESTION 2 [25] Western Moon Hotel uses a cost accounting system. There are five sections that are used in the hotel: Amenities, Catering and Housekeeping that deal directly with customers, with Maintenance and Administration being internal services. The following overhead details have been estimated for the next period: Amenities 10 000 Catering 80 000 Housekeeping Maintenance 40 000 40 000 Admin 10 000 Total 2 400 000 600 000 600 000 150 000 150 000 Consumable materials Staff costs Rent and rates Content insurance Heating and lighting Depreciation ? 2 000 000 170 000 150 000 340 000 The following information is also available: Amenities 20 000 Catering 3 000 Housekeeping 75 000 Maintenance 1 000 Admin 1 000 500 000 150 000 100 000 50 000 50 000 Floor area (m) Value of equipment Number of employees 40 30 40 10 15 Maintenance works 80% for Amenities, 10% for Catering and 10% for Housekeeping. Admin works for 20% for Amenities, 40% for Catering and 40% for Housekeeping. Required: a) Calculate the primary overhead allocation rates as well as the secondary allocation for all the departments. (19) b) Calculate the predetermined overhead rate for each of the following departments: i.Amenities using number of employees ii. Catering using value of equipment iii. Housekeeping using floor area (6)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cash And Financial Management Study Text

Authors: Kaplan

1st Edition

9781839960529

More Books

Students also viewed these Accounting questions

Question

d. Who are important leaders and heroes of the group?

Answered: 1 week ago