Cost Accounting

Cost Accounting

Costing

Question ! ZABZUGU TATALE produces a specialized product KANZO. The product passes through three (3) cost centers namely: machining, assembly and printing shop. Data relating to the cost centers is as helow Machinin Assembly Painting Engineering Stores shop shop Number of 81 51 39 30 24 employees Enginering 18.00(0) 12.000 10,000 shup wervice Stores (orders) 180 135 90 45 At a management meeting dised 24 September 20X0, the following overheads were budgeted for the production and service cost centers exclusively for the ensuing period: Cost centers GHS (100 Machining 180,000 Assembly 160.00 Painting shop 130,000 Engineering shop 84.000 Sinnes 5210 Canteen 75,000 Equally, the following budgeted data relates to the production cost centers: Machining Assembly Painting shop Machine hours 9,200 8.100 6,600 Labr hours 8,300 11,250 9.000 Laborat 411,000 88,000 45,000 (GHS) Actual results for the production cost centers were: Machining Assembly Painting shop Machine bours 10,000 8,20 6,600 Labor hours 4,500 7.870 6,900 Labor Oust (GHS) 25,000 42.00 35.000 Actual overheads 291,000 167,200 155,000 (GHS) Required: 3. Apportion the production overhead costs of the service cost centers to the production cost centers and determine predetermined overhead absorption rates for the three (3) production cost centers on the following basis Machining - Machine bours Assembly Labor hours. Ibrahim Anyass Ahmed 3 of 5 Paint shop - Labor costs (15 marks) h. Prepare a statement showing the under over absorption per cost center for the period under review. (10 marks) TOTAL MARKS (25 MARKS) Question ! ZABZUGU TATALE produces a specialized product KANZO. The product passes through three (3) cost centers namely: machining, assembly and printing shop. Data relating to the cost centers is as helow Machinin Assembly Painting Engineering Stores shop shop Number of 81 51 39 30 24 employees Enginering 18.00(0) 12.000 10,000 shup wervice Stores (orders) 180 135 90 45 At a management meeting dised 24 September 20X0, the following overheads were budgeted for the production and service cost centers exclusively for the ensuing period: Cost centers GHS (100 Machining 180,000 Assembly 160.00 Painting shop 130,000 Engineering shop 84.000 Sinnes 5210 Canteen 75,000 Equally, the following budgeted data relates to the production cost centers: Machining Assembly Painting shop Machine hours 9,200 8.100 6,600 Labr hours 8,300 11,250 9.000 Laborat 411,000 88,000 45,000 (GHS) Actual results for the production cost centers were: Machining Assembly Painting shop Machine bours 10,000 8,20 6,600 Labor hours 4,500 7.870 6,900 Labor Oust (GHS) 25,000 42.00 35.000 Actual overheads 291,000 167,200 155,000 (GHS) Required: 3. Apportion the production overhead costs of the service cost centers to the production cost centers and determine predetermined overhead absorption rates for the three (3) production cost centers on the following basis Machining - Machine bours Assembly Labor hours. Ibrahim Anyass Ahmed 3 of 5 Paint shop - Labor costs (15 marks) h. Prepare a statement showing the under over absorption per cost center for the period under review. (10 marks) TOTAL MARKS (25 MARKS)