I Need Help With The Ecr June 2008 Paper

Eddie
Eddie New MemberRegistered Posts: 5
The exercise 1.4

Supervision: 120,000 ( Apportion to the two production departments pro rata to direct labour cost.

This gives 50,000 ( Plastics Mooulding) 70,000 ( Labelling)

Where these two figures come from?


Depreciation of fixed assets: 48,000 ( plastics moulding) 24,000 ( labelling) 9,000 ( stores) 3000 ( equipment maintenance)

How do I get these figures?

Thank you:001_unsure:

Comments

  • definite.studies
    definite.studies Feels At Home Registered Posts: 88
    The direct labour costs of Plastics Moulding and Labelling are £100,000 & £140,000 in the second data table. So you allocate £120,000 x (100 / 240) = £50,000 to the first department and £120,000 x (140 / 240) = £70,000 to the second.

    For the depreciation costs, the comment in the 1st table by the £84,000 cost tells you to "Apportion according to net book value of fixed assets".

    If you look at the Fixed Asset NBV figures in the second table, the total is £280,000. The percentage of fixed assets in each department can be calculated as a fraction of this total. The resulting fractions can then be used to divvy up the £84,000 between the different departments.

    eg for Stores O/H = £84,000 x (£30,000 / £280,000) = £9,000.

    Hope this helps! :001_smile:
  • Eddie
    Eddie New Member Registered Posts: 5
    Thank you very much!! I did help me!! I have been all this week trying to get the figures!! Thank you again!!
  • any2002uk
    any2002uk Feels At Home Registered Posts: 88
    i hope they will be same for next week exam with show the comment such as use net book value, etc
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