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B. A factory consists of two production cost centres (P and Q) and two service cost centres (X and Y). The total allocated and apportioned
B. A factory consists of two production cost centres (P and Q) and two service cost centres (X and Y). The total allocated and apportioned overhead for each is as follows: Q Y K95,000 K82,000 K46,000 K30,000 It has been estimated that each service cost centre does work for other cost centres in the following proportions: PQ X Y Percentage of service cost centre X to 50 50 0 Percentage of service cost centre Y to 60 10 - Required: Show the reapportionment of service cost centre costs to other cost centers and calculate the total overheads to the production cost centres. (10 Marks] C. A company uses an overhead absorption rate of K3.50 per machine hour, based on 32,000 budgeted machine hours for the period. During the same period the actual total overhead expenditure amounted to K108,875 and 30,000 machine hours were recorded on actual production. Calculate the total overhead under or over absorbed for the period. B. A factory consists of two production cost centres (P and Q) and two service cost centres (X and Y). The total allocated and apportioned overhead for each is as follows: Q Y K95,000 K82,000 K46,000 K30,000 It has been estimated that each service cost centre does work for other cost centres in the following proportions: PQ X Y Percentage of service cost centre X to 50 50 0 Percentage of service cost centre Y to 60 10 - Required: Show the reapportionment of service cost centre costs to other cost centers and calculate the total overheads to the production cost centres. (10 Marks] C. A company uses an overhead absorption rate of K3.50 per machine hour, based on 32,000 budgeted machine hours for the period. During the same period the actual total overhead expenditure amounted to K108,875 and 30,000 machine hours were recorded on actual production. Calculate the total overhead under or over absorbed for the period
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