Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following is the budget for the year 2012 from Tembo Ltd Factory overheads Shs.62,000 Direct labour cost Shs.98,000 Direct labour hours 155,000 Machine hours

  1. The following is the budget for the year 2012 from Tembo Ltd

Factory overheads Shs.62,000

Direct labour cost Shs.98,000

Direct labour hours 155,000

Machine hours 50,000

Actual labour hours were 40,000

Actual machine hours were 30,000

Actual direct labour costs were Shs.50,000

Actual direct material costs were Shs.45,000

Required Determine: (10 marks)

a) The overhead application rate on the basis of

i. Direct labour hours

ii. Direct labour cost

iii. Machine hours,

b) Overhead costs based on the absorption rates above

c) Production cost

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

Financial Accounting For Decision Makers

Authors: DeFond, Mark

3rd Edition

1618534432, 9781618534439

More Books

Students also viewed these Accounting questions

Question

Describe the major barriers to the use of positive reinforcement.

Answered: 1 week ago