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Question 4 [ 1 5 Marks ] You are the Cost Accountant of Chester Construction ( Pty ) Ltd , and your company manufactures four
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Marks
You are the Cost Accountant of Chester Construction Pty Ltd and your company manufactures four products roof tiles, floor tiles, cement and bricks using the same machinery and processes. You compiled the following information relating to the existing production period:
tabletableMaterial costper unitProducttableDirect labourcost per unitMachine timeVolumeper unit,,Roof Tiles,Floor Tiles,CementBricks
Total production overheads are as follows:
table
Roof Tiles
Floor Tiles
Cement
Bricks
An analysis of production overhead activities for the period revealed the following:
Product No
setups
No
Material
orders
No
times material
was handled
No
spare parts
Roof Tiles
Floor Tiles
Cement
Bricks
Required:
Calculate the overhead cost driver rate by filling in the missing figures in the table
below:
Show all calculations and round off calculationsanswers to two decimal
places.
Overhead Overhead
cost
R
Cost driver Cost driver
value
R
Cost driver rate
R
Machine
Setups
Materials
ordering
Materials
handling
Spare parts
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