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    Cost Accounting 87

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    alfredrunz7
    This document illustrates the allocation and apportionment of overhead costs across departments A, B, C, and D. It shows the total overhead costs, cost allocation bases, and the overhead costs allocated to each department for various overhead items like indirect materials, indirect labor, rent, repairs to plant, depreciation of plant, lighting expense, supervision, insurance of stock, employees insurance, power costs, and employee personal costs. The total overhead costs allocated come to 19,050,000 and are broken down by department as 7,249,000 for A, 5,133,000 for B, 2,767,000 for C, and 3,901,000 for D.

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    Cost Accounting 87

    Uploaded by

    alfredrunz7
    21 views1 page
    This document illustrates the allocation and apportionment of overhead costs across departments A, B, C, and D. It shows the total overhead costs, cost allocation bases, and the overhead costs allocated to each department for various overhead items like indirect materials, indirect labor, rent, repairs to plant, depreciation of plant, lighting expense, supervision, insurance of stock, employees insurance, power costs, and employee personal costs. The total overhead costs allocated come to 19,050,000 and are broken down by department as 7,249,000 for A, 5,133,000 for B, 2,767,000 for C, and 3,901,000 for D.

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    COST ACCOUNTING 87

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    This document illustrates the allocation and apportionment of overhead costs across departments A, B, C, and D. It shows the total overhead costs, cost allocation bases, and the overhead costs allocated to each department for various overhead items like indirect materials, indirect labor, rent, repairs to plant, depreciation of plant, lighting expense, supervision, insurance of stock, employees insurance, power costs, and employee personal costs. The total overhead costs allocated come to 19,050,000 and are broken down by department as 7,249,000 for A, 5,133,000 for B, 2,767,000 for C, and 3,901,000 for D.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    21 views1 page

    Cost Accounting 87

    Uploaded by

    alfredrunz7
    This document illustrates the allocation and apportionment of overhead costs across departments A, B, C, and D. It shows the total overhead costs, cost allocation bases, and the overhead costs allocated to each department for various overhead items like indirect materials, indirect labor, rent, repairs to plant, depreciation of plant, lighting expense, supervision, insurance of stock, employees insurance, power costs, and employee personal costs. The total overhead costs allocated come to 19,050,000 and are broken down by department as 7,249,000 for A, 5,133,000 for B, 2,767,000 for C, and 3,901,000 for D.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 1

    COST ACCOUNTING:

    OVERHEAD COSTS: ILLUSTRATION TWO


    Allocation and Apportionment

    OVERHEAD COST PER DEPARTMENT


    (ksh.‘000’)
    Overhead Total Cost Basis A B C D
    (ksh.’000’)
    Indirect 3,850 Allocated 950 1,200 200 1,500
    Materials
    Indirect 3,300 Allocated 900 1,100 300 1,000
    Labor
    Rent 2,000 Floor Area 750 550 450 250
    Repairs to 1,200 Book value of Plant 768 216 144 72
    Plant
    Depreciation 900 Book value of Plant 576 162 108 54
    of Plant
    Lighting 200 Floor area (heat and 75 55 45 25
    Expense lighting costs)
    Supervision 3,000 Number of 1,200 800 600 400
    workers
    Insurance of 1,000 Book value of Stock 500 300 200 --
    Stock
    Employees 300 Number of workers 120 80 60 40
    insurance
    Power Costs 1,800 Technical estimates: 810 270 360 360
    power consumption
    (kWh – kilowatt-hour)
    Employee 1,500 Number of workers 600 400 300 200
    personal costs
    19,050 7,249 5,133 2,767 3,901

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