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  • A) Allocate and Apportion Production Overheads: Oarofa Oarofb

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    usman faisal
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    This document summarizes the allocation and apportionment of production overheads between Departments A and B. It lists the total overheads and then allocates and apportions costs like rent, maintenance, and stores between the departments based on factors like floor area, machinery value, employees, and machine hours. It then calculates the overhead absorption rate per machine hour for each department by dividing the total overheads by the machine hours worked. Department A has an overhead absorption rate of $12.7058 per machine hour and Department B has a rate of $6.6785 per machine hour.

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    Shahzaib Iqbal- Reg Id- 2183130

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    This document summarizes the allocation and apportionment of production overheads between Departments A and B. It lists the total overheads and then allocates and apportions costs like rent, maintenance, and stores between the departments based on factors like floor area, machinery value, employees, and machine hours. It then calculates the overhead absorption rate per machine hour for each department by dividing the total overheads by the machine hours worked. Department A has an overhead absorption rate of $12.7058 per machine hour and Department B has a rate of $6.6785 per machine hour.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    17 views3 pages

    A) Allocate and Apportion Production Overheads: Oarofa Oarofb

    Uploaded by

    usman faisal
    This document summarizes the allocation and apportionment of production overheads between Departments A and B. It lists the total overheads and then allocates and apportions costs like rent, maintenance, and stores between the departments based on factors like floor area, machinery value, employees, and machine hours. It then calculates the overhead absorption rate per machine hour for each department by dividing the total overheads by the machine hours worked. Department A has an overhead absorption rate of $12.7058 per machine hour and Department B has a rate of $6.6785 per machine hour.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 3

    A) Allocate and apportion production overheads

    Overheads
    Central Heating
    General Repair Cost
    Machinery Depreciation
    Allocated Overheads
    Rent and Rates
    Canteen
    Machinery Insurance
    Total
    Reapportionment of Maintenance
    Reapportionment of Stores
    Total Overheads Allocated and Apportioned

    B) Overheads Absorption Rate for Department A and B

    OAR of A
    OAR of B
    Assignment No.2
    Name: Shahzaib Iqbal
    WEMBA
    Reg ID: 2183130
    Management Accounting
    Submitted to: Sir M.Raheem

    Basis A B
    Floor Area 7680 5120
    Floor Area 3840 2560
    Machinery Book Value 32400 13500
    15000 20000
    Floor Area 15360 10240
    Number of employees 3750 3000
    Machinery Book Value 15000 6250
    93030 60670
    Maintenance Hours Worked 17420 13936
    No. of Stores Requisitions 16608 5536
    127058 80142

    partment A and B

    Total overheads of Dept.A/Machine Hours of A 12.7058 per machine hour


    Total overheads of Dept.B/Machine Hours of B 6.6785 per machine hour
    Maintenance Stores Total
    3840 2560 19200
    1920 1280 9600
    5400 2700 54000
    12000 5000 52000
    7680 5120 38400
    1500 750 9000
    2500 1250 25000
    34840 18660 207200
    ((34840)) 3484
    --------------- ((22144))
    -----------

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