Fitwell Ltd
nodgers1
Registered Posts: 31 Regular contributor ⭐
Hi i am just getting back into my studying after a 6 month break due to having a baby, was hoping to get back into it sooner but my baby had other ideas! i have completed unit 5 and unit 32 professional ethics but still have costing and cash management to completed, im not really sure if im gonna beable to complete 2 units before the deadlines but lets hope i do. im with premier training and on shirt test 2 at the moment and my mind is kind of blank, so any help or a nudge in th right direction would be great.
the question is as follows
You are the cost accountant of Fitwell Ltd and have been given the following budgeted info regarding the 4 cost centres within yr organisation
Dept 1 Dept 2 Dept 3 Canteen Total
Indirect labour £60000 70000 25000 15000 170000
Consumables 12000 16000 3000 10000 41000
Heat and light 12000
Rent and Rates 18000
Depreciation 30000
Supervision 24000
Power 20000
£315000
You are given the following information
Dept 1 Dept 2 Dept Canteen Total
Floor space in sq metres 10000 12000 5000 3000 30000
Book value of machinery £ 150000 120000 20000 10000 300000
Number of employees 40 30 10 80
Kilowatt hours 4500 4000 1000 500 10000
Provide a statement of showing the allocation and apportionment of overhead to the four cost centres, clearly showing the bases of allocation
i think i have a fair idea of what i need to do, just unclear over a few things. which cost centre would consumables and supervision be assigned to?
also i am unclear as to in the first table we only have total figures for hearing and light, rent, depreciation, supervision and power. do we have to work out the figures for each dept in that case?
any help would be extremely grateful
thank you
the question is as follows
You are the cost accountant of Fitwell Ltd and have been given the following budgeted info regarding the 4 cost centres within yr organisation
Dept 1 Dept 2 Dept 3 Canteen Total
Indirect labour £60000 70000 25000 15000 170000
Consumables 12000 16000 3000 10000 41000
Heat and light 12000
Rent and Rates 18000
Depreciation 30000
Supervision 24000
Power 20000
£315000
You are given the following information
Dept 1 Dept 2 Dept Canteen Total
Floor space in sq metres 10000 12000 5000 3000 30000
Book value of machinery £ 150000 120000 20000 10000 300000
Number of employees 40 30 10 80
Kilowatt hours 4500 4000 1000 500 10000
Provide a statement of showing the allocation and apportionment of overhead to the four cost centres, clearly showing the bases of allocation
i think i have a fair idea of what i need to do, just unclear over a few things. which cost centre would consumables and supervision be assigned to?
also i am unclear as to in the first table we only have total figures for hearing and light, rent, depreciation, supervision and power. do we have to work out the figures for each dept in that case?
any help would be extremely grateful
thank you
0
Comments
-
Consumables are assigned for you by the looks of things. Supervision, I would say has to be apportioned by number of employees.
You would calculate what proportion of the total costs go to each dept by looking at the split in Power, Machine Book Value, Employees or Floor space.
Eg Supervision total £24,000. Split 40:30:10:80.(emp no) £6,000, £4,500, £1,500, £12,000.
(£24,000/(40+30+10+80)) = £150, £150 x 40 =£6,000 dept 1.. etc
Really probably unhelpful, but Heyho I tried!!
Good Luck
x0
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