Maurice Tutor

(5)

$15/per page/Negotiable

About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 402 Weeks Ago, 5 Days Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 08 Aug 2017 My Price 13.00

Cost Centres.

QUESTION ONE

Kansomba Fabricators Limited produces various machine tools for the mining industry. It has four main Cost Centres.

It allocated overheads to the four departments as follows:

Dept: Cost (K)

A 672,000

B 420,000

Repairs 84,000

Maintenance 56,000

In addition, there are general overheads of K308, 000 which should be apportioned:

A: 40% B: 30% Repairs: 20% Maintenance: 10%

 

A and B are production departments. Repairs and Maintenance service production as follows:

A B Repairs Maintenance

Repairs 60% 40% - -

Maintenance 40% 40% 20% -

 

Budgeted labour hours:

A: 40,000 hours; B: 8,000 hours

 

Budgeted machine hours:

A: 5,000hours; B: 60,000 hours

 

a) Calculate an overhead absorption rate for each production department.

16 MARKS

 

b) Kasomba has budgeted overheads of K400,000 and budgeted labour hours of 50,000. Actual labour hours worked were 48,000 and actual overheads incurred were K410,000.

Calculate the pre-determined overhead absorption rate AND the amount of over- or under-absorption of overheads. 9 MARKS

 

c) Explain the advantages and disadvantages of using direct labour hours as an absorption base for overheads. 10 MARKS

d) Explain why Absorption costing and marginal costing methods give the same net profit figures if the units produced and units sold are same for that period, and why the two methods give different profit figures if the unit produced are different from the sold sold for that period.

15 MARKS

(TOTAL = 50 MARKS

Answers

Maurice Tutor
(5)
Status NEW Posted 08 Aug 2017 09:08 PM My Price 13.00

Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------and----------- ac-----------qui-----------sit-----------ion----------- of----------- my----------- po-----------ste-----------d s-----------olu-----------tio-----------n.P-----------lea-----------se -----------pin-----------g m-----------e o-----------n c-----------hat----------- I -----------am -----------onl-----------ine----------- or----------- in-----------box----------- me----------- a -----------mes-----------sag-----------e I----------- wi-----------ll

Not Rated(0)