Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

NEED HELP ASAP ! The management team at RLS Limited is trying to decide which activity labour or machine hours) is best for absorbing overheads

NEED HELP ASAP ! image text in transcribed
The management team at RLS Limited is trying to decide which activity labour or machine hours) is best for absorbing overheads into its product cost. As the management accountant, you were presented with the following information by the production manager Cost Centre - XYZ Data for January 2021 Budgeted Actual Overheads $15.000 $16.000 Direcf labour hours 2000 1975 Direct wages $3,600 $3.810 Direct Material $6,000 $5.900 2800 2745 Machine hours 95 98 Units produced Required: A Calculate the predetermined overhead absorption rate using both activity levels [3 marka) B. Calculate over/under absorption for both activities. [6 marks] C Aduse management which activity should be used. Give reason for your answer. [2 marca]

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

Accounting concepts and applications

Authors: Albrecht Stice, Stice Swain

11th Edition

978-0538750196, 538745487, 538750197, 978-0538745482

More Books

Students also viewed these Accounting questions

Question

What is lapping?

Answered: 1 week ago

Question

Name the various categories of accounting package.

Answered: 1 week ago

Question

Where in the hiring process are you?

Answered: 1 week ago