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CAC2113 Chapter 3 Model Answer

The document provides information about production overhead costs including depreciation, stores, set-up, inspection, and packing department costs. It also includes data on direct labor hours and production overhead per unit for different products. The production overhead is then allocated and calculated for each product based on various drivers like machine hours, store requisitions, and sales orders.

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Ramesh
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30 views4 pages

CAC2113 Chapter 3 Model Answer

The document provides information about production overhead costs including depreciation, stores, set-up, inspection, and packing department costs. It also includes data on direct labor hours and production overhead per unit for different products. The production overhead is then allocated and calculated for each product based on various drivers like machine hours, store requisitions, and sales orders.

Uploaded by

Ramesh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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Production Overhead

Depreciation $ 6,520
Stores Department Cost $ 6,120
Set-up Cost $ 4,030
Inspection Department Cost $ 10,075
Packing Department Cost $ 12,755
$ 39,500

Product Units Direct Labour Hours/unit Total Labour Hours


J 2000 5 10000
K 1800 4 7200
L 2400 6 14400
31600

Production Overhead/hour $ 1.25 per hour

Product Direct Labour Hours/unit Production Overhead/unit


J 5 $ 6.25
K 4 $ 5.00
L 6 $ 7.50
Production Overhead Cost Driver
Depreciation $ 6,520 Machine Hour
Stores Department Cost $ 6,120 Store Requisitions
Set-up Cost $ 4,030 Production Runs
Inspection Department Cost $ 10,075 Production Runs
Packing Department Cost $ 12,755 Sales Orders

Production Overhead Driver J


Depreciation Machine Hour 4000
Stores Department Cost Store Requisitions 8
Set-up Cost Production Runs 10
Inspection Department Cost Production Runs 10
Packing Department Cost Sales Orders 80
Total Allocation

J K
Total Production Overhead $ 13,292.00 $ 9,711.00
Production & Sales (Units) 2000 1800
Production Overhead/unit $ 6.65 $ 5.40
Absorption Rate
16300 $ 0.40 per hour
24 $ 255 per requisition
31 $ 130 per production run
31 $ 325 per production run
200 $ 63.775 per order

J K L
$ 1,600.00 2700 $ 1,080.00 9600
$ 2,040.00 6 $ 1,530.00 10
$ 1,300.00 10 $ 1,300.00 11
$ 3,250.00 10 $ 3,250.00 11
$ 5,102.00 40 $ 2,551.00 80
$ 13,292.00 $ 9,711.00

L
$ 16,497.00
2400
$ 6.87
L TOTAL
$ 3,840.00 $ 18,820.00
$ 2,550.00 $ 6,136.00
$ 1,430.00 $ 4,051.00
$ 3,575.00 $ 10,096.00
$ 5,102.00 $ 12,875.00
$ 16,497.00

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