Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A company produces several products which pass through two production departments in itsfactory. These two departments are concerned with assembling and packaging products. There are
- A company produces several products which pass through two production departments in itsfactory. These two departments are concerned with assembling and packaging products. There are two service departments’ maintenance and c afeteria, in the factory.Predetermined overhead allocation rates, based on direct labour hours are established for thetwo production departments. The budgeted expenditure for these departments for the period just ended, including the apportionment of service department overheads, was N$ 105 000 forassembly and N$ 54 050 for packaging. Budgeted direct labour hours are 12 000 for assemblyand 10 250 for packaging.Service department overheads are apportioned as follows:% used ofMaintenance costs% used ofCafeteria costsAssembly 70 60Packaging 30 30Maintenance - 10Cafeteria - -During the period just ended, actual overhead costs and activity were as follows:N$ Direct labour hoursAssembly 74 560 12 105Packaging 37 800 10 520Maintenance 25 000Cafeteria 23 450 REQUIRED MARKS a.Calculated the overheads allocated in the period and indicate the over andunder allocation in each production department. 15
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