Essays24.com - Term Papers and Free Essays
Search

Problems on Various Elements of Costs

Essay by   •  October 22, 2015  •  Book/Movie Report  •  1,081 Words (5 Pages)  •  1,052 Views

Essay Preview: Problems on Various Elements of Costs

Report this essay
Page 1 of 5

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

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

  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

Particulars

Production OH

Admin OH

Selling and distribution OH

Recovered by applying predetermined rates

20000

10000

10000

Actual expenses incurred

19000

12000

9500

  1. 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

  1. 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

  1. 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

  1. 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

...

...

Download as:   txt (8.8 Kb)   pdf (142.2 Kb)   docx (16 Kb)  
Continue for 4 more pages »
Only available on Essays24.com