FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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.
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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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