Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the information given in the image below to answer the questions that follow a. Apportion the production overhead costs of the service cost centers

Use the information given in the image below to answer the questions that follow

image text in transcribed

a. Apportion the production overhead costs of the service cost centers to the production cost centers and determine predetermined overhead absorption rates for the three (3) production cost centers on the following basis: Machining - Machine hours. Assembly - Labor hours. Paint shop-Labor costs.

b. Prepare a statement showing the under/over absorption per cost center for the period under review.

Note:Kindly show working and calculations Already rated 100%

ZABZUGU TATALE produces a specialized product KANZO. The product passes through three (3) cost centers namely: machining, assembly and painting shop. Data relating to the cost centers is as below: Machinin Assembly Painting Engineering Stores shop shop Number of 81 51 39 30 24 employees Engineering 18,000 12,000 10,000 shop-- service Stores (orders) 180 135 90 45 At a management meeting dated 24th September 20X0, the following overheads were budgeted for the production and service cost centers exclusively for the ensuing period: Cost centers GHS 000 Machining 180,000 Assembly 160,000 Painting shop 130,000 Engineering shop 84,000 Stores 52,000 Canteen 75,000 Equally, the following budgeted data relates to the production cost centers: Machining Assembly Painting shop Machine hours 9,200 8,100 6,600 Labor hours 8,300 11,250 9,000 Labor cost 40,000 88,000 45,000 (GHS) Actual results for the production cost centers were: Machining Assembly Painting shop Machine hours 10,000 8,200 6,600 Labor hours 4,500 7,800 6,900 Labor cost (GHS) 25,000 42,000 35,000 Actual overheads 290,000 167,000 155,000 (GHS) Rquired

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

Fundamental accounting principle

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

21st edition

1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587

More Books

Students also viewed these Accounting questions

Question

Discuss the various types of policies ?

Answered: 1 week ago

Question

Briefly explain the various types of leadership ?

Answered: 1 week ago

Question

Explain the need for and importance of co-ordination?

Answered: 1 week ago

Question

Explain the contribution of Peter F. Drucker to Management .

Answered: 1 week ago