Mangament Accounting Assignment Example | Topics and Well Written Essays - 3000 words

Mangament Accounting - Assignment ExampleService Dept Y bell apportioned 20% 30% 50% The first step is to assign an appropriate cost driver to the overheads so as to determine the appropriate divisional overhead point, the following card summarises the appropriate cost drivers for the cost objects Overheads cost driver1. involve and strays alkali athletic field occupy2. Machine insurance machine take account3. bring forward charges labour hours 4. Depreciation machine value 5. Production supervisors salaries labour hours 6. Heating and spark labour hours From the above fudge it is evident that the rent and rates will be charged to each department with reference to floor area, machine insurance cost will be charged using the machine value in each department, telephone charges, supervisor salaries and heat and lighting will be charged with reference to labour hours. We now determine the overhead rate in each departmentRent and ratesWe determine the rent and rate allocation rate for each department, this will be determined by dividing the rent and rate cost by the total area and multiplying this with the area occupied by each departmentRent and rates = 12,800Floor area = 3,000 + 1,800 + 600 + 600 + 400 = 6400Rent and rates allocation rate = 12,800/6400 = 2Each department allocated rent and rate costsWe determine the rent and rate cost for each department by multiplying the rent and rate allocation rate by the floor area for each departmentABCXYFloor area occupied(sq metres)30001800600600400Rent and rates allocation rate22222Rent and...For York furniture in the manufacture of job 123 and job 124 we apply the job order costing method, however we also note that there are three departments involved in the production of these products and therefore we have to determine the overhead rates in each department.We consider the five department namely department A, department B, department C, service department X and service department Y as cost centres whereby products are assigned costs by the departments they consecrate throughThe first step is to assign an appropriate cost driver to the overheads so as to determine the appropriate departmental overhead rate, the following table summarises the appropriate cost drivers for the cost objectsFrom the above table it is evident that the rent and rates will be charged to each department with reference to floor area, machine insurance cost will be charged using the machine value in each department, telephone charges, supervisor salaries and heat and lighting will be charged with reference to labour hours. We now determine the overhead rate in each departmentWe determine the rent and rate allocation rate for each department, this will be determined by dividing the rent and rate cost by the total area and multiplying this with the area occupied by each departmentThe machine and insurance cost will be allocated using the machine value in each department, for this