Problems on Various Elements of Costs

Problems on various elements of costs

1. Allocate, apportion overheads to production and service cost centers and redistribute service cost centre cost to production cost centre based on the following data

The following information is added for redistribution of service cost centre overhead

1. From the following compute machine hour rate

Cost of Machine 4,00,000 , scrap value Rs 40,000 , life 10 years,. Machine runs two shifts 2 shift, 7 hours each per shift, for 300 days in a year, 200 hours lost due to maintenance

Other details

1. Wages of two operator RS 4000 PM Per each operator
2. Rent of machine shop accommodating 4 identical machines is Rs 2400 PM
3. General lighting charges of dept Rs 300 PM
4. Insurance premium Rs 200 per quarter
5. Cost of repairs & maintenance per machine / month Rs 2500
6. Supervisor say Rs 6000 PM
7. Power consumption 20 units / hour @ 1.75 Rs per unit
8. Other factory overhead Rs 13200/ PA

The supervisor spends 1/5 of his time for each machine

1. Say in which case over heads are over absorbed and which are the cases it is under absorbed

1. Calculate overhead absorption based on following information

1. A cigarette manufacturing company absorbs overheads on machine hour rate. The following  process are there in the company

Calculate over all and department wise over head absorption rates and comment

1. A company makes 1000 units of an item during a period & sells  800 units for 8000 $ company of products were as follows

Actual production value is as budgeted

Calculate profits using absorption costing, marginal costing and throughput accounting

1. From the following prepare cost sheet