Homework 4 Sazz Ltd. produces two products A and B in three production departments (assembling, painting and sales). It also has two service departments (maintenance and cleaning). Required: Distribute the overheads based on an adequate basis and calculate the planned overhead absorption rates using the sequential method (use the most appropriate sequence regarding interrelationships – use book for help): Direct labour hour rate for assembling department Machine hour rate for the painting department Rate per product for the sales department Round appropriately for currency values. Production Departments Service Departments Assembling Painting Sales Maintenance Cleaning Total Allocated overheads 40,000€ 20,000€ 30,000€ 50,000€ 60,000€ 200,000€ Rent, heat, light 78,000€ Depreciation 90,000€ Additional data Gross book value of equipment 55,000€ 45,000€ 110,000€ 25,000€ 65,000€ 300,000€ Floor space occupied in m² 3,000 4,000 5,000 2,000 1,000 15,000 Maintenance service hours 2,000 1,500 700 300 4,500 Direct labor hours 15,000h Machine hours 8,000h Number of products 2,000
Homework 4 Sazz Ltd. produces two products A and B in three production departments (assembling, painting and sales). It also has two service departments (maintenance and cleaning). Required: Distribute the overheads based on an adequate basis and calculate the planned overhead absorption rates using the sequential method (use the most appropriate sequence regarding interrelationships – use book for help): Direct labour hour rate for assembling department Machine hour rate for the painting department Rate per product for the sales department Round appropriately for currency values. Production Departments Service Departments Assembling Painting Sales Maintenance Cleaning Total Allocated overheads 40,000€ 20,000€ 30,000€ 50,000€ 60,000€ 200,000€ Rent, heat, light 78,000€ Depreciation 90,000€ Additional data Gross book value of 55,000€ 45,000€ 110,000€ 25,000€ 65,000€ 300,000€ equipment Floor space occupied 3,000 4,000 5,000 2,000 1,000 15,000 in m² Maintenance service 2,000 1,500 700 300 4,500 hours Direct labor hours 15,000h Machine hours 8,000h Number of products 2,000
Attachments:
Homework 4 1.pdf