Answered step by step
Verified Expert Solution
Link Copied!

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,

image text in transcribed

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

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

Brinks Modern Internal Auditing A Common Body Of Knowledge

Authors: Robert R. Moeller

8th Edition

9781119016984

More Books

Students also viewed these Accounting questions

Question

Explain the factors that determine the degree of decentralisation

Answered: 1 week ago

Question

What Is acidity?

Answered: 1 week ago

Question

Explain the principles of delegation

Answered: 1 week ago

Question

State the importance of motivation

Answered: 1 week ago

Question

Discuss the various steps involved in the process of planning

Answered: 1 week ago

Question

Discuss the key people management challenges that Dorian faced.

Answered: 1 week ago

Question

How fast should bidder managers move into the target?

Answered: 1 week ago