COST ACCOUNTING –FACTORY OVERHEAD

Q No.1.
Data relating to Department B for August:

Total factory overhead Rs.6000

Total direct labor hours 800
Direct labor Rs. 1600
Direct material used Rs. 3000
Machine hour 1200

Required:
Calculate FOH rate base on above data using base as
(i) labor hour (ii) labor cost (iii) prime cost (iv) machine hour
(v) material cost

Q No.2(a)
Calculate five different overhead rate for cost center AM on the following budgeted
data:
Labor hours 1400
Total direct labor Rs.3600
Direct material cost Rs.7500
Machine hour 2850
Units produced 535
Total factory overhead Rs.12900

(b)
A cost unit has been produced in Cost center AM and following details recorded:

Direct material used Rs.16.5

Direct labor Rs.17.5
Direct labor hours 5.5 hour
Machine hour 8.5 hour

Calculate the cost of the above unit using each of the absorption bases calculated in (a)

Q No.3
A factory has two production departments and two service departments. Overhead are
given as under
Production deptt Service deptt
A B C D
Overhead 6000 4000 1170 1500

Department C is allocated to A: 40%, B: 50% and D: 10%

Department D is allocated to A: 50%, B: 30% and C: 20%
Show how the expenses of the two service departments are to be charged to the two
production departments.