THE FEDERAL DEMOCRATIC REPUBLIC OF Withholding Tax On Payment

ETHIOPIA Declaration
ETHIOPIAN REVENUE AND CUSTOMS (Continuation Sheet For
AUTHORITY Form 1105)
Section 1 - Taxpayer Information

. Name of 2. Tax 3. Tax Period

Person or Identification
Organization Number
Month   Year 20 Page 2 of 2
Withholding
February
Tax 21

Section 2 - Declaration Details

*e)
Withholdin f)
g Taxabl g) Tax
h) Withholding Tax
d) Withholder’s Address Type e Withheld
Receipt
a) (Rental of Amoun ((f) x2%)
N TIN Name Buildings/ t
o. Other)
Keble/
Zone/
Wor Farmer Hous Numbe
Region Sub- Date
eda s e No. r
city
Asso.

8
Solution for Question 14
Material receipt costs Br. 31,200
Power costs 39,000
Material handling costs 27,300

Total overhead cost Br 97,500

Total overhead cost 97,500

Overhead absorption rate= = ¿ = 25unit
∑ ( Direct labour hourX output ) 3900 ¿
Product P Q R total
Output (units) X 4,000 3,000 1,600
Direct labour (hours) 0.2 0.5 1.0
800 1.500 1600 = 3900

Direct material (kg) X Direct material (Br. ) 4 x6=24 6x5=30 3 x9= 27

Direct labour rate per hour X Direct labour Br. 8x0.2=1.6 Br. 8 x0.5=4 Br. 8 x1=8
(hours)
Overhead cost rate X Direct labour (hours) 25x.2=5 25x.5=12.5 25x1=25
Full cost per Unit 30.6 46.5 60

Birr cost dirve

Material receipt costs number of batches of material 31200 20+10+32= 62
Power costs number of power operations 39000 4x4000+6x3000+3x1600=38800
Material handling costs kg of material handled 27300 6x4000+3x3000+2x1600=38200

Expected use of cost driver per product

Cost pool cost driver P Q R

Material cost No. batch 20 10 32

Power cost No. power oper 24,000 9,000 3200
Material handling kg of material handled 16,000 18,000 4800
Activity based over head=Estimated over head rate/Expected use of cost
driver
Cost pool cost driver ABOH

Material reciept 31,200/62 = 503.23

Power cost 39,000/36,200= 1.077
Material handlling 27,300/38,800= 0.7
Cost Assigned =Expeted use of cost per product×ABOH

Cost pool P Q R
Material reciept 20(503.23) 10(503.23) 32(503.23)
10,064.5 5,032.23 16,103.23
Power cost 24,000(1.077) 9,000(1.077) 3200(1.077)
25,856.35 9,696.13 3,497.5
Material head cost 16,000(.7) 18,000(0.7) 4,800(0.7)
11,257.73 12,664.9 3,377.33
Total cost Assigned 47,178.6 27,393.3 22,928
Unit product cost 4,000 3,000 1,600
Over Head cot per unit Br11.8 9.13 14.33
Product
Manufacturing cost P Q R
Direct material 24 30 27
Direct labour 1.6 4 8
Over Head 11.8 9.13 14.33
Total cost/unit 37.4 43.13 49.33

Solution for Question 15,

POR= Estimated OH/Expected use of cost order (machine hour)

=935,000/93,500=10 units
Manufacturing Product
Cost D E F
Direct material 18 10 20
Direct labour 1(8)=8 3(8)=24 2(8)=16
Over Head 3(10)=30 2(10)=20 6(10)=60
Total cost per unit 56 64 96

Cost assigned =Expected use of cost per unit×ABOR

Cost pool product

D E F
Set up cost 90(407) =36,632 138(407) =56,169.77 576(407)= 234,432

Handling cost 16(1,168,75)= 18,700 28(1668.75)=32,725 116(1168.75) =135,575

Machine cost 4500(1.5)=6,750 5000(1.5)=7500 84,000(1.5)= 126,000