I Need Help With The Ecr June 2008 Paper

Eddie

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:

definite.studies

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

Thank you very much!! I did help me!! I have been all this week trying to get the figures!! Thank you again!!

any2002uk

i hope they will be same for next week exam with show the comment such as use net book value, etc