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  • CMA HW Question 1

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    Prience 1213
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    The document shows calculations to distribute overhead costs across production departments X, A, B, C, and service department Y. It first calculates primary distribution of overhead costs based on different allocation bases. This results in overhead allocations of $4777.78 to department X and $5877.78 to department Y. It then uses a repeated distribution method to further allocate the overhead costs of departments X and Y to the other departments, resulting in final overhead allocations across all departments totaling $6126.214.

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    CMA hw question 1.xlsx

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    The document shows calculations to distribute overhead costs across production departments X, A, B, C, and service department Y. It first calculates primary distribution of overhead costs based on different allocation bases. This results in overhead allocations of $4777.78 to department X and $5877.78 to department Y. It then uses a repeated distribution method to further allocate the overhead costs of departments X and Y to the other departments, resulting in final overhead allocations across all departments totaling $6126.214.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    12 views3 pages

    CMA HW Question 1

    Uploaded by

    Prience 1213
    The document shows calculations to distribute overhead costs across production departments X, A, B, C, and service department Y. It first calculates primary distribution of overhead costs based on different allocation bases. This results in overhead allocations of $4777.78 to department X and $5877.78 to department Y. It then uses a repeated distribution method to further allocate the overhead costs of departments X and Y to the other departments, resulting in final overhead allocations across all departments totaling $6126.214.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 3

    ser. Dept. X = M ser. Dept.

    Y = N
    M = 4777.78+.05N N = 5877.78 + 0.1M
    M = 4777.78+0.05(5877.78 + 0.1 N = 5877.78 + 0.1(775.77)
    m = 477.78 + 293.889 + 0.005M N = 5877.78 + 77.58
    M = 771.889 + 0.005M N = 5955.36
    M-0.005M = 771.889
    M = 771.889/0.995
    M = 775.77

    particulers Amt. Basis for ratio Ratio Production dep.


    x y z
    Primary Distribution
    particulers Amt. Basis for ratio Ratio Production dep. Service dep.
    A B C X
    Direct materials - - - + - - 2000
    Direct wages - - - - - - 1000
    Factory rent 4000 Area 2:1:2:1:2 1000 500 1000 500
    Power 2500 Machine hourse 1:2:4:1:1 277.78 555.56 1111.11 277.78
    Depreciation 1000 Capital value 2:4:2:1:1 200 400 200 100
    Other overheads 9000 Hourse power 10:8:4:3:5 3000 2400 1200 900
    total primary dist. 16500 - - 4477.78 3855.56 3511.11 4777.78
    Reapeted DistributionMethod
    particulers Amt. Basis for ratio Ratio Production dep. Service dep.
    A B C X
    o.h. of ser. dep. X 4777.78 Given 45:15:30:10 2150.01 716.67 1433.33 -4777.78
    dep. Y 6355.56 given 60:35:05 3813.33 2224.45 0 317.78
    dep. X 317.78 Given 45:15:30:10 143.001 47.66 95.33 -317.78
    dep. Y 31.78 Given 60:35:05 19.07 11.12 0 1.59
    dep. X 1.59 Given 45:15:30:10 0.71 0.23 0.48 -1.59
    dept. Y 0.15 Given 60:35:05 0.093 0.057 0 0
    Total 6126.214 3000.187 1529.14 0

    Service dep.
    a b
    Service dep.
    Y
    1000
    2000
    1000
    277.78
    100
    1500
    5877.78

    Service dep.
    Y
    477.78
    -6355.56
    31.78
    -31.78
    0.15
    -0.15
    0

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