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Required: Prepare an overhead analysis sheet to apportion the overheads to the various cost centres with basis of apportionment clearly identified.

Required: Prepare an overhead analysis sheet to apportion the overheads to the various cost centres with basis of apportionment clearly identified.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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QUESTION 25 A company has three production centres, A, B and C and two service centres, D and E. The overheads incurred for the month of January, 2020 has been compiled by the cost accountant's deputy as follows: Indirect material GHe GHe A 250,000 B 225,000 125,000 D 75,500 E 85.000 760.500 Indirect labour A 72,500 B 48,600 88,650 D 22.000 15.000 246,750 Indirect expenses Lighting and heating 100,000 Power 135,000 Supervision 140,000 Canteen service 200,000 Transport 150,000 144,500 200,000 120.000 Maintenance Depreciation of machinery Insurance of building L189,000 2.196,750 The following additional information is relevant: Cost centre Mileage Number of Maintenance Machine employees hours Meter Area per centre reading occupies (kilowatts) (sq. cost (GHe) Meters) Production A 15,000 200 20 60 15 300,000 B 20,000 500 50 80 25 600,000 25,000 300 30 60 10 100,000 Service E 10,000 150 20 30 20 F 10,000 250 30 20 40 Required: Prepare an overhead analysis sheet to apportion the overheads to the various cost centres with basis of apportionment clearly identified.
Transcribed Image Text:QUESTION 25 A company has three production centres, A, B and C and two service centres, D and E. The overheads incurred for the month of January, 2020 has been compiled by the cost accountant's deputy as follows: Indirect material GHe GHe A 250,000 B 225,000 125,000 D 75,500 E 85.000 760.500 Indirect labour A 72,500 B 48,600 88,650 D 22.000 15.000 246,750 Indirect expenses Lighting and heating 100,000 Power 135,000 Supervision 140,000 Canteen service 200,000 Transport 150,000 144,500 200,000 120.000 Maintenance Depreciation of machinery Insurance of building L189,000 2.196,750 The following additional information is relevant: Cost centre Mileage Number of Maintenance Machine employees hours Meter Area per centre reading occupies (kilowatts) (sq. cost (GHe) Meters) Production A 15,000 200 20 60 15 300,000 B 20,000 500 50 80 25 600,000 25,000 300 30 60 10 100,000 Service E 10,000 150 20 30 20 F 10,000 250 30 20 40 Required: Prepare an overhead analysis sheet to apportion the overheads to the various cost centres with basis of apportionment clearly identified.
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