Essay About Service Cost Centers And 3001206010020Nilcost Of Machines

Problems on Various Elements of Costs
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Problems on various elements of costsAllocate, apportion overheads to production and service cost centers and redistribute service cost centre cost to production cost centre based on the following dataItemsAmount RsRent10000Lighting & Electricity1200Indirect Wages3000Power3000Depreciation on machines20000Other expenses20000ParticularsTotalMixingMakingPackingStoresCanteenFloor Sq mtr100002000250030002000500Light Point ( no)1202030402010Direct wages (Rs)2000060004000600030001000Horse power machines3001206010020NilCost of Machines( Rs 000)10024324022The following information is added for redistribution of service cost centre overheadParticularsMixingMakingPackingStoresCanteenNo of employees1031026No requisitions1259210From the following compute machine hour rateCost 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 maintenanceOther detailsWages of two operator RS 4000 PM Per each operatorRent of machine shop accommodating 4 identical machines is Rs 2400 PMGeneral lighting charges of dept Rs 300 PMInsurance premium Rs 200 per quarterCost of repairs & maintenance per machine / month Rs 2500Supervisor say Rs 6000 PMPower consumption 20 units / hour @ 1.75 Rs per unitOther factory overhead Rs 13200/ PAThe supervisor spends 1/5 of his time for each machineSay in which case over heads are over absorbed and which are the cases it is under absorbedParticularsProduction OHAdmin OHSelling and distribution OH Recovered by applying predetermined rates200001000010000Actual expenses incurred19000120009500Calculate overhead absorption based on following informationParticularsMaximum capacityPractical capacityDirect Labour Hours2000016000Fixed overhead6000060000Variable over head4000032000A cigarette manufacturing company absorbs overheads on machine hour rate. The following  process are there in the companyCost centreMachine hourOverhead in RsLeaf processing2000200000Cigarette Making8000400000Cigarette Packing10000300000Calculate over all and department wise over head absorption rates and commentA company makes 1000 units of an item during a period & sells  800 units for 8000 $ company of products were as followsParticularsAmount in $Material3000Direct Labour2000Fixed Production OH1000Other OH1000Actual production value is as budgetedCalculate profits using absorption costing, marginal costing and throughput accountingFrom the following prepare cost sheetParticularsValue in RsDirect Material1000000Direct Labour2,00,000Direct Expenses1,00,000Production Overhead1,00,000Opening stock WIP2,00,000Closing Stock WIP2,50,000Administrative overheads50000Opening stock of Finished Goods1,50,000Closing stock Finished Goods2,00,000Selling and General Administrative 1.25,000