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    Overheads Mna Assignment Ques

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    Overheads Mna Assignment Ques

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    doshiviraj77
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    Copyright:

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    Download as xlsx, pdf, or txt
    13 views5 pages

    Overheads Mna Assignment Ques

    Uploaded by

    doshiviraj77

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 5

    IN THE BOOKS OF MAHINDRA MACHINISTS LIMITED

    OVERHEAD DISTRIBUTION SUMMARY

    Basis of
    Particulars apportionment PRODUCTION DEPARTMENT
    A B C

    Direct wages Given - - -

    Direct Materials Given - - -

    Indirect Materials Direct Materials 5,000 2,500 4,750

    Indirect wages Direct Wages 3,750 3,750 1,000

    Depreciation on Machinery Value of machinery 6,000 10,000 4,000

    Depreciation of buildings Floor Area 1,500 1,000 1,000

    Rent, Rates and Taxes Floor area 3,000 2,000 2,000

    Electric Power for machinery H.P. of machines 5,000 6,000 3,000

    Electric Power for lighting No of Light points 150 100 100

    General Expenses Direct Wages 5,625 5,625 1,500

    PRIMARY DISTRIBUTION Total 30,025 30,975 17,350

    Reapportionment of Dept D 40 : 20 : 30 : 10 6,120 3,060 4,590


    36,145 34,035 21,940

    Reapportionment of Dept E 30 : 30 : 40 6,114 6,114 8,152


    Total 42,259 40,149 30,092

    Labour hours 5,000 5,000 2,000

    Labour hour rate 8.45 8.03 15.05


    TS LIMITED
    ARY

    SERVICE DEPARTMENT TOTAL


    D E

    2,000 4,000 6,000 6,000

    6,000 5,000 11,000 11,000

    1,500 1,250 15,000 15,000

    500 1,000 10,000 10,000

    2,500 2,500 25,000 25,000

    500 1,000 5,000 5,000

    1,000 2,000 10,000 10,000

    500 500 15,000 15,000

    50 100 500 500

    750 1,500 15,000 15,000

    15,300 18,850 112,500 112,500

    -15,300 1,530 -
    - 20,380 112,500

    -20,380 -
    - - 112,500
    X = 7500 + 0.20Y

    Y = 6100 + 0.10X

    X = 7500 + 0.20Y
    -X = 61000 - 10Y

    9.80 = 68500

    Y = 68500/9.8
    Y = 7600 6990

    Therefore X = 7500 + 0.20(6990) = 8898

    A B C P Q
    Given 11,310 13,050 8,040 7,500 6,100

    Dept P (X) 8,898 2,669 3,559 1,780 -8,898 890

    Dept Q (Y) 6,990 1,048 1,747 2,796 1,398 -6,990

    total 15,028 18,357 12,616 - -

    No of hours 5,000 4,000 3,000

    DLH Rate 3.01 4.59 4.21


    COMPUTATION OF COMPOSITE MACHINE HOUR RATE

    Particulars Basis of Apportionment A B C

    Direct Wages Given 1,600,000 2,000,000 2,400,000


    Indirect Wages No of workers 450,000 450,000 900,000
    Supervisor Salaries Machine hours 218,750 218,750 262,500
    Depreciation Value of assets 200,000 350,000 300,000
    Insurance Value of assets 100,000 175,000 150,000
    Electricity Charge Percentage in HP 480,000 300,000 420,000
    Welfare Expenses No of workers 225,000 225,000 450,000
    Office and other expensesMachine hours 500,000 500,000 600,000
    Total 3,773,750 4,218,750 5,482,500
    `
    Machine hours 50,000 50,000 60,000

    Machine hour rate 75.475 84.375 91.375

    THERE CAN BE MULTIPLE ANSWERS BASED ON BASIS OF APPORTMENT


    COMPUTATION OF MACHINE HOUR RATE

    (2000 productive hours)


    Particulars Rs. Rs.

    Standing Charges
    Rent, rates and taxes 600
    General Lighting 900
    Insurance Premium 960
    Repairs and Maintenance 1,000
    Supervisor Salary 1,440
    4,900

    2.45
    Variable Charges

    Depreciation 3.5
    Power 2.0 5.5
    Machine Hour Rate 7.95

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