Answered step by step
Verified Expert Solution
Question
1 Approved Answer
what's the answer of this question? Question 2 Answer both parts below. Part A ceramic and glass business, FDP Ltd, manufactures quality tableware for large
what's the answer of this question?
Question 2 Answer both parts below. Part A ceramic and glass business, FDP Ltd, manufactures quality tableware for large national retailers. It has two production departments and two service departments Budgeted total overhead costs for the coming year are as follows Total (E) Rent and rates 22,800 Machine insurance 25,000 Heating and lighting 35,000 The two production departments Moulding and Finishing, a the two service departments Maintenance and Catering, are housed in the new premises, the details of which, together with other information are given below: Departments Mounding Finishing Maintenance catering Allocated Overheads Specific to each department, () 8,600 10,400 2,600 2230 2470 1500 1950 Floor area (square metres) Machinery value (E) 27,000 29,250 5.250 3500 L1750 12 Electricity (power) used, kWh Number of employees Required: (a) create a statement showing the total overhead costs budgeted for each of the four departments. In each case, explain which basis should be used and why Provide working notes for your calculations. (10 marks) (b) After completing (a) above, apportion the overhead costs from the service departments to the product departments (assuming that the service departments do not provide any service to each other) and recalculate the total overhead costs for each of the four departments. Provide working notes for your calculations. 5 marks) PTO Page 4 of 10Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started