Question
Please Answer the following question correctly for an upvote. If you don't know the answer please don't solve it. Subject Name is Cost Accounting Question:
Please Answer the following question correctly for an upvote. If you don't know the answer please don't solve it.
Subject Name is Cost Accounting
Question:
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 $100,000
Below is annual budgeted overheads in: USD ($)
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:
Prepare overhead allocation sheet and reapportion maintenance department cost to the two production departments on the basis of value of machinery.
Machining Assembly
Direct material in $ 3,500 100
Direct labor in $ 500 1,400
Machine hours 100 10
Direct Labor hours 20 60
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