Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Casual sports limited has two production departments which are Machining and Assembling and one maintenance service department. The below-budgeted estimates are for year 1. Particulars

Casual sports limited has two production departments which are Machining and Assembling and one maintenance service department. The below-budgeted estimates are for year 1.

Particulars Machining Assembly Maintenance Total

No of employees 160 120 120 400

Floor Area (Sq/mtr) 7,000 5,000 4,000 16,000

Power (Kilowatt hours) 70,000 52,500 17,500 140,000

Direct Machine Hours 14,000 400 - 14,400

Direct Labor hours 1,000 6,000 - 7,000

Information:

Indirect material $300 $268 $320 $888

Indirect wages $2,720 $1,480 $860 $5,060

Value of machinery $52,000 $48,000 $100,000

Below are annual budgeted overheads in USD ($)

Rent 12,800

Machine depreciation 10,000

Power 7,200

Supervision of employees 6,400

Indirect material 888

Indirect Labor 5,060

Total overheads 42,348

Required:

  1. Prepare overhead allocation sheet and reapportion maintenance department cost to the two production departments on the basis of the value of machinery.
  2. Calculate overheads absorption rates for each production department based on machine hours for the Machining Department and direct labour hours for the Assembling department.
  3. Make a job order cost sheet for Job no 001 and calculate the selling price if the profit margin is 20% of the selling price. Consider the below information.

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

Cash, Corruption And Economic Development

Authors: Vikram Vashisht

1st Edition

1032096888, 9781032096889

More Books

Students also viewed these Accounting questions

Question

Describe what a controller and evaluator do.

Answered: 1 week ago

Question

I wasnt sure how to talk about this situation. It was too personal.

Answered: 1 week ago