Cost Accounting

Assignment 9
Umar Farooq
17U00609

E4-14

Factory Overhead Expected Amount Expected Level of Overhead Rate

Cost Pool ($)) Allocation Base

Assembly Support 50,000 (50,000/75,000) 0.67

Machining Support 80,000 2000 Machine hours 40
Machine setups 25,000 Number of setups i.e. 125
200

Design Changes 15,000 500 Design Hours 30

E4-18

Amount of each Percentage of Total Balance of Prorated

Under/Over Overhead
Applied Overhead Applied
Work in Progress 60,000 24% $25,000 $6,000
Finished Goods 40,000 16% $4,000
Cost of Goods 150,000 60% $15,000
Sold
Total 250,000 $25,000

b)

Work in Process…………………………………………… 6000

Finished Goods ................................................................ 4,000
Cost of Goods Sold .......................................................... 15,000
Under-and Overapplied Factory Overhead............................. 25,000