#1
|
|||
|
|||
Q 5 (b) 2016
The Homes Garments Company has decided to distribute the costs of service
departments by the algebraic method. The producing departments are Cutting department and Sewing department. The service departments are Maintenance and cafeteria, and monthly data are: Actual factory overhead Costs before distribution Services provided by (Rs.) Maintenance Cafeteria Cutting department 126,000 40% 50% Sewing department 87,000 50% 30% Maintenance department 30,000 --- 20% Cafeteria 26,400 10% --- Required:: Total factory overhead of producing department Cutting after distribution of service department costs. |
#2
|
|||
|
|||
In this question service department costs are allocated to the respective Production department costs. As the question demands only the overhead costs of Cutting department, we will find it after solving Simultaneous Equation.
Overheard costs for each department Cutting Department 126,000 Sewing Department 87,000 Maintainence Department 30,000 Cafeteria 26,400 We use the reallocation table to find the following equation m=30,000+0.2c c=26,400+0.1m m=30,000 c=36,000 Original Overhead cost of cutting department 126,000 Maintenance Department Reallocation 40%*36,000= 14,400 Cafeteria Reallocation 50%*30,000=15,000 Adding all these quantities give the value of 155,400 which is the new reallocation of costs under simultaneous equation method. |
|
|
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
Current Affairs | Sureshlasi | Current Affairs | 60 | Tuesday, May 12, 2020 01:45 PM |
Human Rights Commission of Pakistan Annual Reports | Amna | Gender Studies | 1 | Sunday, July 22, 2018 03:54 PM |
Khushhali Bank Limited Jobs 2016 Apply Online | mazhar mehmood | Khushhali Bank | 3 | Monday, August 29, 2016 04:06 PM |
List of various 41 MS and PhD scholarships from February to June 2016 | Man Jaanbazam | Scholarships | 1 | Wednesday, February 03, 2016 11:27 PM |
current affairs notes | Aqazaansari | Current Affairs | 3 | Wednesday, September 09, 2015 10:55 AM |