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problem 1: Eclipse is a small precision engineering company with two machine shops, Machine Shop A and Machine Shop B, supported by the two service departments Service Department 1 (S1) and Service Department 2 (S2).

The given information is given:

1178_budgeted factory overhead cost.jpg

1132_budgeted information.jpg

Required:

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

b) Compute an overhead absorption rate for each production department, by using the most appropriate basis of absorption.

c) Computed OAR is Rs 11. The actual overheads for the machining cost center were Rs 82,681 and 7,328 machine hours were worked. Find out the amount of under or over absorbed overheads?

d) Describe in brief four differences between the financial and management accounting.

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M96718

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