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can someone please assist with the pastpaper question on overheads? Question 3 [ 38 marks ] Portland Producers Ltd was preparing its overhead budgets for
can someone please assist with the pastpaper question on overheads?
Question 3 [ 38 marks ] Portland Producers Ltd was preparing its overhead budgets for the December 2016 period. The entity makes a product that passes through three production department and is also affected by two service departments. The three production departments are milling, processing and packaging, and two service departments are stores and inspections. The following budgeted overheads and L... usage is as follows: Favwever, during the period ended December 31, 2016, actual overheads in department milling, processing and packaging were as follow respectively: $1,400,000,$1,900,000 and $3,500,000; while, actual activity levels for all three were 250,000,275,000 and 380,000 machine hours for milling, processing and packaging respectively. Required: a. Use the step down method to derive the re-allocated overheads to production departments and derive the overhead absorption rates for these departments. [13.5 marks] b. From the information calculate in part (a) above, derive the over/under absorption of overheads in each department. [4 marks] c. Use the simultaneous equation method to derive the re-allocated overheads to production departments and derive the overhead absorption rates for these departments. [16.5 marks] d. From the information calculate in part (c) above, derive the over/under absorption of overheads in each departments [4 marks] Question 3 [ 38 marks ] Portland Producers Ltd was preparing its overhead budgets for the December 2016 period. The entity makes a product that passes through three production department and is also affected by two service departments. The three production departments are milling, processing and packaging, and two service departments are stores and inspections. The following budgeted overheads and L... usage is as follows: Favwever, during the period ended December 31, 2016, actual overheads in department milling, processing and packaging were as follow respectively: $1,400,000,$1,900,000 and $3,500,000; while, actual activity levels for all three were 250,000,275,000 and 380,000 machine hours for milling, processing and packaging respectively. Required: a. Use the step down method to derive the re-allocated overheads to production departments and derive the overhead absorption rates for these departments. [13.5 marks] b. From the information calculate in part (a) above, derive the over/under absorption of overheads in each department. [4 marks] c. Use the simultaneous equation method to derive the re-allocated overheads to production departments and derive the overhead absorption rates for these departments. [16.5 marks] d. From the information calculate in part (c) above, derive the over/under absorption of overheads in each departments [4 marks] Step by Step Solution
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