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  • Cost and Management Accounting 1 Assignment2

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    Bhodza
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    This document provides overhead expenditure and absorption rates for 4 cost centers (A, B, C, D). It shows that Cost Center D has a low overhead allocation of $20,000 initially. It then reapportions 50% of Cost Center D's total overheads to Cost Center A, 30% to Cost Center B, and 20% to Cost Center C. This increases the total overheads to be allocated to each cost center.

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    Cost and Management Accounting

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    This document provides overhead expenditure and absorption rates for 4 cost centers (A, B, C, D). It shows that Cost Center D has a low overhead allocation of $20,000 initially. It then reapportions 50% of Cost Center D's total overheads to Cost Center A, 30% to Cost Center B, and 20% to Cost Center C. This increases the total overheads to be allocated to each cost center.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    55 views2 pages

    Cost and Management Accounting 1 Assignment2

    Uploaded by

    Bhodza
    This document provides overhead expenditure and absorption rates for 4 cost centers (A, B, C, D). It shows that Cost Center D has a low overhead allocation of $20,000 initially. It then reapportions 50% of Cost Center D's total overheads to Cost Center A, 30% to Cost Center B, and 20% to Cost Center C. This increases the total overheads to be allocated to each cost center.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    SUBJECT: COST AND MANAGEMENT ACCOUNTING 1

    Assignment 2

    Overhead
    Expenditure
    Depreciation
    of
    Production
    Equipment
    Employers
    liability
    Insurance
    Energy Cost
    Indirect
    Labour
    Rent and
    Building
    Insurance
    Personnel
    expenses

    Absorption rate

    500000
    =0.1
    5000000

    A
    250000

    50000
    100000
    =$ 1000 per employee
    100

    Cost Center
    $
    B
    C
    150000
    80000

    D
    20000

    30000

    15000

    5000

    57142.8
    0

    28571.6

    114285.6
    200000
    =2857.14 per
    0
    70

    3 00000
    =$ 1 .50/m2
    200000

    700000

    300000

    250000

    150000

    60000

    60000

    30000

    30000

    15000

    5000

    44285.8

    26571.4
    8

    17714.3
    2

    1358571.
    4

    596571.
    48

    494857.
    12

    50000
    100000
    =$ 1000/employee
    100

    88571.6
    Reapportioni
    ng Cost
    Center D
    Total
    Overheads
    to be
    allocated to
    Cost centre
    D
    Reapportioni
    ng Cost
    Center D
    Total

    50% to A, 30% to
    B, 20% to C.

    120000

    50% to A, 30% to
    B, 20% to C.

    60000

    36000

    24000

    1418571.
    4

    632571.
    48

    518857.
    12

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