Problems on Various Elements of Costs
Essay by Ashish Parashar • October 22, 2015 • Book/Movie Report • 1,081 Words (5 Pages) • 1,061 Views
Problems on various elements of costs
- Allocate, apportion overheads to production and service cost centers and redistribute service cost centre cost to production cost centre based on the following data
Items | Amount Rs |
Rent | 10000 |
Lighting & Electricity | 1200 |
Indirect Wages | 3000 |
Power | 3000 |
Depreciation on machines | 20000 |
Other expenses | 20000 |
Particulars | Total | Mixing | Making | Packing | Stores | Canteen |
Floor Sq mtr | 10000 | 2000 | 2500 | 3000 | 2000 | 500 |
Light Point ( no) | 120 | 20 | 30 | 40 | 20 | 10 |
Direct wages (Rs) | 20000 | 6000 | 4000 | 6000 | 3000 | 1000 |
Horse power machines | 300 | 120 | 60 | 100 | 20 | Nil |
Cost of Machines( Rs 000) | 100 | 24 | 32 | 40 | 2 | 2 |
The following information is added for redistribution of service cost centre overhead
Particulars | Mixing | Making | Packing | Stores | Canteen |
No of employees | 10 | 3 | 10 | 2 | 6 |
No requisitions | 12 | 59 | 210 |
- 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
- Wages of two operator RS 4000 PM Per each operator
- Rent of machine shop accommodating 4 identical machines is Rs 2400 PM
- General lighting charges of dept Rs 300 PM
- Insurance premium Rs 200 per quarter
- Cost of repairs & maintenance per machine / month Rs 2500
- Supervisor say Rs 6000 PM
- Power consumption 20 units / hour @ 1.75 Rs per unit
- Other factory overhead Rs 13200/ PA
The supervisor spends 1/5 of his time for each machine
- Say in which case over heads are over absorbed and which are the cases it is under absorbed
Particulars | Production OH | Admin OH | Selling and distribution OH |
Recovered by applying predetermined rates | 20000 | 10000 | 10000 |
Actual expenses incurred | 19000 | 12000 | 9500 |
- Calculate overhead absorption based on following information
Particulars | Maximum capacity | Practical capacity |
Direct Labour Hours | 20000 | 16000 |
Fixed overhead | 60000 | 60000 |
Variable over head | 40000 | 32000 |
- A cigarette manufacturing company absorbs overheads on machine hour rate. The following process are there in the company
Cost centre | Machine hour | Overhead in Rs |
Leaf processing | 2000 | 200000 |
Cigarette Making | 8000 | 400000 |
Cigarette Packing | 10000 | 300000 |
Calculate over all and department wise over head absorption rates and comment
- A company makes 1000 units of an item during a period & sells 800 units for 8000 $ company of products were as follows
Particulars | Amount in $ |
Material | 3000 |
Direct Labour | 2000 |
Fixed Production OH | 1000 |
Other OH | 1000 |
Actual production value is as budgeted
Calculate profits using absorption costing, marginal costing and throughput accounting
- From the following prepare cost sheet
Particulars | Value in Rs |
Direct Material | 1000000 |
Direct Labour | 2,00,000 |
Direct Expenses | 1,00,000 |
Production Overhead | 1,00,000 |
Opening stock WIP | 2,00,000 |
Closing Stock WIP | 2,50,000 |
Administrative overheads | 50000 |
Opening stock of Finished Goods | 1,50,000 |
Closing stock Finished Goods | 2,00,000 |
Selling and General Administrative | 1.25,000 |
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