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Joshil Ltd. has two Production Departments, P1 and P2, and two Service Departments, Stores and General. The company has budgeted the given costs for the forthcoming period:

2452_budget cost.jpg

The given information is as well available:

1005_information of budget cost.jpg

Overheads are absorbed in both the Production Departments on a Machine Hour basis.

Required:

a) Make an Overhead Analysis Sheet for the period, by using suitable bases of apportionment.

b) Compute the absorption rate for each department.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M96950

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