Question
TOPIC: OVERHEAD COSTING Given: Total budgeted overheads = Shs.240, 000 and the Production budget is given as follows: Product A B i) Units 20,000 10,000
TOPIC: OVERHEAD COSTING
Given: Total budgeted overheads = Shs.240, 000 and the Production budget is given as follows:
| Product | A | B |
| i) Units | 20,000 | 10,000 |
| ii) Labour hours | 20,000 | 20,000 |
| iii) Labour cost | Shs.17,500 | Shs.22,500 |
| iv) Machine hours | 45,000 | 15,000 |
| v) Material cost | Shs.15,000 | Shs.25,000 |
Required; The overhead absorption rate per unit of A and B using the following methods: a) Unit method b) Percentage on material cost. c) Percentage on labour cost. d) Percentage On prime cost. e) Labour hour rate. f) Machine hour rate. (Total: 15 Marks)
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Accounting and Finance An Introduction
Authors: Peter Atrill, Eddie McLaney
8th edition
978-1292088297
