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    Allocation & Apportionment-EXERCISE

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    Tay Choon Shen
    1. The document provides information about service centers, production centers, overhead costs, and cost centers for a company. 2. It asks to prepare an overhead analysis sheet showing allocations and apportionments to each cost center, calculate overhead absorption rates for Residential and Catering, and calculate under/over absorption of overheads given actual results. 3. Information such as service center apportionment bases, cost center costs and statistics, and overhead costs are given to complete the required analysis.

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    Allocation & Apportionment-EXERCISE

    Uploaded by

    Tay Choon Shen
    108 views7 pages
    1. The document provides information about service centers, production centers, overhead costs, and cost centers for a company. 2. It asks to prepare an overhead analysis sheet showing allocations and apportionments to each cost center, calculate overhead absorption rates for Residential and Catering, and calculate under/over absorption of overheads given actual results. 3. Information such as service center apportionment bases, cost center costs and statistics, and overhead costs are given to complete the required analysis.

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    1. The document provides information about service centers, production centers, overhead costs, and cost centers for a company. 2. It asks to prepare an overhead analysis sheet showing allocations and apportionments to each cost center, calculate overhead absorption rates for Residential and Catering, and calculate under/over absorption of overheads given actual results. 3. Information such as service center apportionment bases, cost center costs and statistics, and overhead costs are given to complete the required analysis.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    108 views7 pages

    Allocation & Apportionment-EXERCISE

    Uploaded by

    Tay Choon Shen
    1. The document provides information about service centers, production centers, overhead costs, and cost centers for a company. 2. It asks to prepare an overhead analysis sheet showing allocations and apportionments to each cost center, calculate overhead absorption rates for Residential and Catering, and calculate under/over absorption of overheads given actual results. 3. Information such as service center apportionment bases, cost center costs and statistics, and overhead costs are given to complete the required analysis.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 7

    ACC2101 Session 15

    Service Centres Stores Area (sq meter) No of employees 300 4 Maint. 400 12 8 20 Product Control 100 30

    Production centres Totals X 3,000 200 20 320 Y 4,200 300 12 210 8,000 546 40 550

    Value of Equipment (RM000)


    Electricity (000 unit) No of extraction points Indirect material (RM) Indirect labour cost (RM) No of requisitions

    1
    11 287 -

    2
    25 671 175

    44 1,660 -

    14
    31 1,040 1,000

    23
    63 1,805 575

    40
    174 5,463 1,750

    Other overhead costs for the year are as follows:


    Rents Factory administration cost RM1,250 RM4,500

    Machine depreciation
    Machine insurance Power Heat and lighting Maintenance costs

    RM2,000
    RM1,800 RM850 RM4,250 RM17,500

    Service center apportionment is based on: Stores material requisitions Maintenance only to prouction control, X and Y Production control no of employees

    Prepare the overhead analysis sheet.

    (in RM)

    Residential

    Catering

    Housekeeping

    Maintenance

    Totals

    Consumable materials Staff costs Rent and rates Insurance Heat and lighting Depreciation on equipment

    14,000 16,500

    23,000 13,000

    27,000 11,500

    9,000 5,500

    73,000 46,500 37,500 14,000 18,500 37,500 227,000

    The following information is also available:


    Residential Floor area (sq mtr) Value of Equipment No of employees 2,750 RM350,000 20 Catering 1,350 RM250,000 20 Housekeeping 600 RM75,000 15
    Maintenance

    Totals 5,000 RM750,000 60

    300 RM75,000 5

    1.

    2. 3.

    In the period it is estimated that there will 2,800 guest-nights and 16,000 meals will be served; Housekeeping works 70% for Residential and 30% for Catering; Maintenance works 20% for Housekeeping, 30% for Catering and 50% for Residential.

    Required: Prepare an overhead analysis sheet showing clearly allocations and apportionments to each cost centre. Calculate the appropriate overhead absorption rates for Residential and Catering. Calculate the under/over absorption of overheads if actual results were as follows: Residential: 3,050 guest-nights with overheads of RM114,000. Catering: 15,250 meals with overheads of RM89,250.

    a. b. c.

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