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problem 1: Swatathon Inc. has two production departments (A and B) and two service departments (maintenance and stores). The detail of next year’s budgeted overheads is illustrated below.

1022_budgeted overheads.jpg

Details for each department are as shown below:

1422_details of dept..jpg

Service department’s services were used as shown below:

1880_service dept..jpg

Required:

Make a statement to show the total overheads for each production department, exhibiting the basis of apportionment chosen.

problem 2: The given data relate to one year in department A.

Budgeted machine hours      25,000
Actual machine hours           21,875
Budgeted overheads            Rs 350,000
Actual overheads                 Rs 300,000

Required:

Based on the data above, determine the machine hour absorption rate?

problem 3:

a) describe in brief four differences between the financial and management accounting.

b) What is meant by the word cost centre. 

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M96684

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