Ask Question, Ask an Expert


Ask Cost Accounting Expert

problem 1: You are the Cost Accountant of an industrial concern and have been assigned the responsibility of developing a cost accounting system. Initially it has been decided to make three production cost centers and two service cost centers.

The given data relating to the next accounting period have been estimated as shown below:

38_accounting period.jpg

Throughout the period the given data were recorded:

1551_recorded data.jpg

The given details were obtained from the accounts concerning to the period:
 Fire Insurance                                                                      1,250
Power                                                                                  4,500
Heating and Lighting                                                              2,000
Rates                                                                                   1,800
Machine depreciation                                                              8,400
Machine Insurance                                                                 850
Canteen deficit                                                                      4,250
Balance of maintenance costs (excl. major works)                    17,500


a) Make an overhead analysis sheet showing how overhead costs must be apportioned between the departments.

b) Compute appropriate overhead absorption rates for the Milling, Assembly and Spraying departments, stating clearly the overhead absorption basis used.

problem 2: The daughter of the managing director of ABC Ltd. is attending a university degree course in accounting and finance. Throughout a telephone call to his daughter the managing director asked her to enquire from her lecturers which of the given is accurate when considering allocation, apportionment and reapportionment of overheads in an absorption costing condition:

a) Only production associated costs must be considered.

b) Allocation is the condition where part of an overhead is assigned to a cost centre.

c) Costs might only be reapportioned from production centers to service centers.

d) Any overheads assigned to a single department must be ignored.

Required: In brief describe what must be the advice of the lecturers to the Managing Director’s daughter.

problem 3: Activity Based Costing is a costing model which re-examines the problem which has faced accountants and accounting technicians for decades-that of the allocation and absorption of overhead. As such Activity Based Costing or ABC provides a workable and more efficient insight into overhead.

Required: In brief describe on three uses and three limitations to the Activity Based Costing system.

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M96688

Have any Question? 

Related Questions in Cost Accounting

Exercise assume that schipper company has the same data as

Exercise : Assume that Schipper Company has the same data as before, but that Schipper Company now pays a marginal tax rate of 40 percent. Required 1. What is the after-tax cost of the mortgage bonds? 2. What is the afte ...

Assignment 1 - consider the places of employment of the

Assignment 1 - Consider the places of employment of the team members or businesses with which the team is familiar and the industries in which they operate. Create a 12-slide presentation, including detailed speaker note ...

This is a comprehensive problem all contained on this

This is a comprehensive problem all contained on this spreadsheet tab. Process Job Costing and Equivalent Units of Production Bay Manufacturing produces paint. The company has two processes: mixing and packaging. The ing ...

Cost accenting group report assignment-outcomes -a select

Cost Accenting Group Report Assignment- Outcomes - a) Select devise and apply different types of cost allocation and explain their different roles for supporting strategic managerial decision making. b) Design and prepar ...

Assignmentproblem 1 cvp analysisthe owners of cobbs gym

Assignment Problem 1: CVP analysis The owners of Cobb's Gym currently are working on their operating plan for the coming year, and they have provided you with the following average membership and cost data for the previo ...

This consists of a series of short answers to given

This consists of a series of short answers to given questions or statements. In a single Word document, provide 1-2 paragraphs about each of the following: 1. Explain and provide an example of each step of the five-step ...

Abc costing1 assume you own a business that makes two

ABC COSTING 1. Assume you own a business that makes two complementary products for which you allocated manufacturing overhead proportionally. A competitor is trying to undercut your price for one of the products. How mig ...

Question1 which of the following statements concerning job

Question 1. Which of the following statements concerning job costing systems is incorrect? a. Cost drivers are those items which cause actual overhead to exceed applied overhead. b. Job costing systems are appropriate to ...

Cost accountingthe following company uses machine-hours to

Cost Accounting The following company uses machine-hours to allocate manufacturing overhead costs.                                               Company         Job # 323 Direct materials                         $25,000 ...

Cool ride skis ltd case studyit is the end of 2015 and

COOL RIDE SKIS LTD CASE STUDY It is the end of 2015 and Grace Miller, senior management accountant for Cool Ride Skis Ltd has been analysing the Victorian division's 2015 results. Both she and the company's Managing Dire ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate