17.A factory in London processes turkeys for sale. The production process is classifiedinto four cost centres and the budget for each of the cost centre is as follows:Indirect labourConsumablesHeating & lightingRent and ratesDepreciationSupervisionPowerThe following information is also available:Labour hoursMachine hoursFloor space (sq metres)Book value of machinery ($)No. of employeesKilowatt hoursDirect materials ($)Direct labour ($)Maintenance hoursRequired:(a)TotalS340,000 120,000Cutting Cooking$S140,00082,000 24,000 32,00024,00036,00060,000(b)48,00040,000630,000(c)Total16020,000Canteen MaintenanceS30,000 50,00020,000 6,000Cutting Cooking Canteen Maintenance10,0006,00020,000 40,00010101,0002,00060,000 20,000 24,000600,000 300,000240,000809,000100,00050,0008,00012,64010,300608,00050,00042,0006,0008,40015,700Draw up a suitable columnar form and distribute the budgeted overhead costsover the four cost centres, using appropriate bases.Reapportion the accumulated costs of the two service centres over the twoproduction cost centres using suitable bases.Use appropriate bases to calculate the overhead absorption rates for eachproduction department.

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Description: 17.A factory in London processes turkeys for sale. The production process is classifiedinto four cost centres and the budget for each of the cost centre is as follows:Indirect labourConsumablesHeating & lightingRent and ratesDepreciationSupervisionP

Discription Total Cutting Cooking Canteen Maintance Kilowatt. Hours 20000 9000 8000 1000 2000…

Answered: Draw up a suitable columnar form and…

Business

Accounting

Draw up a suitable columnar form and distribute the budgeted overhead costs over the four cost centres, using appropriate bases..

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 8E: A manufacturing company has two service and two production departments. Building Maintenance and...

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ABC; pricingChester Inc. has identified activity centers to which overhead costs are assigned. The cost pool amounts for these centers and their selected activity drivers for the year follow. Activity Centers Costs Activity Drivers Utilities $1,440,000 90,000 machine hours Scheduling and setup 1,310,400 1,170 setups Material handling 3,072,000 2,400,000 pounds of material The company’s products and other operating statistics follow. Product A Product B Product C Direct costs $96,000 $96,000 $108,000 Machine hours 45,000 15,000 30,000 Number of setups 195 570 405 Pounds of material 750,000 450,000 1,200,000 Number of units produced 60,000 30,000 90,000 Direct labor hours 48,000 27,000 75,000 b. Before it installed an ABC system, Chester used a traditional costing system that allocated factory overhead to products using direct labor hours. The firm operates in a competitive market and sets product prices at cost plus a 25 percent markup.…
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Multiple Choice $107.46 per unit $110.71 per unit $66.19 per unit $67.82 per unit
Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours Expected Overhead Cost $ 233,600 $ 9,360 $ 80,000 $59,850 $ 236,500 Expected Activity 29,200 DLHS 234 orders 100 part types 1,710 boards 21,500 MHS Required: 1. Compute the activity rate for each of the activity cost pools. 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Product A Product B Product C Product D 4,400 74 25 430 3,300 16,100 29 3,300 50 44 530 5,400 81 13 18 750 8,100 3,600 6,500 Using the…