Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A business produces sports equipment according to special customer requests. The business has 3 manufacturing departments: Preparation, Assembly, Packing; and one service department: General Administration,
A business produces sports equipment according to special customer requests. The business has 3 manufacturing departments: Preparation, Assembly, Packing; and one service department: General Administration, which offers services to the other three departments. After allocation and apportionment of the overheads, and after re-apportionment of the service cost centre's overheads, the following amounts of overheads have been allocated to the three manufacturing cost centres: Preparation Packing Assembly 156,000 322,400 95,000 The overheads apportioned to the Preparation departement are allocated to jobs based on direct labour hours worked in this Dept, the overheads apportioned to the Assembly department are allocated to jobs based on machine hours in this Assembly Dept, the overhead apportioned to the Packing department are allocated to jobs based on direct labour hours in the Packing Dept. Preparation Assembly Packing 6,200h machine hours: 0h 500h direct labour hours: 6,000h 1,000h 5,000h Round to a full number; do not enter commas or dots separating blocks of thousands! a) Calculate the overhead absorption rate per labour hour in the Preparation department! OAR (Prep.) per direct labour hour in the Preparation Dept. b) What is the overhead absorption rate in the Assembly department? OAR (Assembly) = per machine hour in the Assembling Dept. c) The overhead absorption rate in the Packing department is: OAR (Packing) = per direct labour hour in the Packing Dept
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started