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ASSIGNMENT 2 (10 MARKS) Due date 4/3/2020
Prepare an overhead analysis using the following data and calculate suitable overhead absorption rates
for the Milling, Assembly and Spraying departments. The data relate to one accounting period
Basic data
Production Cost centres
Service cost centres
Milling
Assembly
Stores
Maintence
Totals
No. of employees
Labour hours
Machine & Plant value (Sh.)
Area (M
2
)
Material requisitions
Maintenance hours (Minor
work)
KWH (‘000)
Machine hours
30
1,510
225,000
7,500
1,400
75
300
8,400
75
3,320
75,000
10,000
300
30
70
1,100
6
252
17,000
500
10
14
595
85,000
1,000
550
170
150
6,627
447,000
22,500
2,500
150
600
9,800
During the period the following data were recorded:
Indirect materials
Indirect Labour
Major Maintenance
Sh.
25,000
52,500
185,000
Sh.
10,000
25,000
75,000
Sh.
3,000
42,500
Sh.
17,000
117,500
Sh.
70,000
260,000
305,000
The following details were obtained from the accounts relating to the period.
Sh.
Fire insurance 12,500
Power 45,000
Heating and lighting 20,000
Rates 18,000
Machine depreciation 84,000
Machine insurance 8,500
Canteen deficit 42,500
Balance of maintenance costs (Excl. major works) 175,000

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ASSIGNMENT 2 (10 MARKS) Due date 4/3/2020 Prepare an overhead analysis using the following data and calculate suitable overhead absorption rates for the Milling, Assembly and Spraying departments. The data relate to one accounting period Basic data Production Cost centres Service cost centres Milling Assembly Spraying Stores Maintence Totals 30 75 25 6 14 150 1,510 3,320 950 252 595 6,627 225,000 75,000 45,000 17,000 85,000 447,000 7,500 10,000 3,500 500 1,000 22,500 1,400 300 250 550 2,500 75 30 45 150 No. of employees Labour hours Machine & Plant value (Sh.) Area (M2) Material requisitions Maintenance hours (Minor work) KWH (‘000) 300 70 50 10 Machine hours 8,400 1,100 300 During the period the following data were recorded: Sh. Sh. Sh. Sh. Indirect materials 25,000 10,000 15,000 3,000 Indirect Labour 52,500 25,000 22,500 42,500 Major Maintenance 185,000 75,000 45,000 The following details were obtained from the accounts relating to the period. Sh. Fire insurance Power Heating and lighting Rates Machine depreciation Machine insurance Canteen deficit Balance of maintenance costs (Excl. major works) 12,500 45,000 20,000 18,000 84,000 8,500 42,500 175,000 170 600 9,800 Sh. 17,000 117,500 Sh. 70,000 260,000 305,000 Name: Description: ...
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