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Mario the Saviour Ltd. manufactures backpacks and portable tables for tourists in three production departments: Cutting Room, Backpacks and Portable Tables. The whole process is
Mario the Saviour Ltd. manufactures backpacks and portable tables for tourists in three production departments: Cutting Room, Backpacks and Portable Tables. The whole process is organized in the following way: first, materials are cut in the cutting room and then are sewed in in either Backpacks or Portable Tables Departments. Additionally, Mario the Saviour Ltd. uses three Service Departments: Raw Material Stores, Canteen and Main Tenancy Departments. For the year to 31st of December cost centre expenses and other information are budgeted as follows: nequiremitis: (a) (i) Prepare a statement, showing the overhead cost budgeted for each department, showing the basis of apportionment used. (10 marks) Hint: use overhead bases, which you consider most appropriate, and these bases should be clearly represented in your answer (ii) Reallocate costs of Raw Material Stores, Canteen and Main Tenancy Departments to all six Departments using step-down method. Remember that Canteen Department is allocated using labour hours and Main Tenancy Department is based on machine hours. (5 marks) Mario the Saviour Ltd. manufactures backpacks and portable tables for tourists in three production departments: Cutting Room, Backpacks and Portable Tables. The whole process is organized in the following way: first, materials are cut in the cutting room and then are sewed in in either Backpacks or Portable Tables Departments. Additionally, Mario the Saviour Ltd. uses three Service Departments: Raw Material Stores, Canteen and Main Tenancy Departments. For the year to 31st of December cost centre expenses and other information are budgeted as follows: nequiremitis: (a) (i) Prepare a statement, showing the overhead cost budgeted for each department, showing the basis of apportionment used. (10 marks) Hint: use overhead bases, which you consider most appropriate, and these bases should be clearly represented in your answer (ii) Reallocate costs of Raw Material Stores, Canteen and Main Tenancy Departments to all six Departments using step-down method. Remember that Canteen Department is allocated using labour hours and Main Tenancy Department is based on machine hours
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