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the following information give below relates to the forthcoming period for a manufacture’s operation. there are four cost centres of which two are involved in production and two are service cost centres.
production department service department
total A B canteen stores
$ $ $ $ $
allocated costs 70, 022 21, 328 29, 928 8, 437 10, 329other costs
rents and rates 4, 641
building insurance 3, 713
electricity and gas 6, 800
plant depreciation 28, 390
plant insurance 8, 517
TOTAL 122, 083Areas occupied (square metres) 7, 737 6, 188 1, 547 3, 094
plant at cost ($’000) 1, 845 852 _ 142
number of employees 600 300 30 70
machine hours 27, 200 800 _ _
direct labor hours 6, 800 18, 000 _ _
number of store requisitions 27, 400 3, 400 _Required: use this information to calculate a product overhead absorption rate for departments A and B. _
Please don’t set full questions like this and expect others to do it for you!
How to do this is covered in full in our free lectures. Why not watch the lectures and learn – and then do it yourself? You will have to do it by yourself in the real exam 🙂
(The lectures are a complete free course for Paper F2 and cover everything needed to be able to pass the exam well.)
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