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  • Cost Accounting Assignments 2a

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    Victory Barasa
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    Production departments A, B, and C and service departments 1 and 2 incurred a total of 253,400 Shs in overheads for a period. The service department expenses are charged to the production departments on a percentage basis, with department 1 charging 20% to A, 40% to B, 30% to C, and 10% to department 2, and department 2 charging 40% to A, 20% to B, 20% to C, and 20% to department 1. The question asks to apportion the overheads to the production departments using simultaneous equations and repeated distribution methods.

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    Cost Accounting

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    Cost accounting assignments 2a (2)

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    Production departments A, B, and C and service departments 1 and 2 incurred a total of 253,400 Shs in overheads for a period. The service department expenses are charged to the production departments on a percentage basis, with department 1 charging 20% to A, 40% to B, 30% to C, and 10% to department 2, and department 2 charging 40% to A, 20% to B, 20% to C, and 20% to department 1. The question asks to apportion the overheads to the production departments using simultaneous equations and repeated distribution methods.

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    © All Rights Reserved
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    109 views1 page

    Cost Accounting Assignments 2a

    Uploaded by

    Victory Barasa
    Production departments A, B, and C and service departments 1 and 2 incurred a total of 253,400 Shs in overheads for a period. The service department expenses are charged to the production departments on a percentage basis, with department 1 charging 20% to A, 40% to B, 30% to C, and 10% to department 2, and department 2 charging 40% to A, 20% to B, 20% to C, and 20% to department 1. The question asks to apportion the overheads to the production departments using simultaneous equations and repeated distribution methods.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    LESSON TWO : Overheads

    Lesson 2: Assignment question 1(20 marks)

    A company has three production departments(A,B and C) and two service departments (1 and
    2) for a period, the departmental overheads distribution summary has the following totals:
    Shs
    Production Dept : A 80,000
    B 70,000
    C 50,000
    Service Dept : 1 23,400
    2 30,000
    253,400
    The expenses of the service departments are charged out on a percentage basis as follows :
    A B C 1 2
    Service Department : 1 20% 40% 30% - 10%
    2 40% 20% 20% 20% -
    Required: Show the apportionment of the overheads to the production departments using:
    a) Simultaneous Equations method (10 marks)
    b) Repeated distribution method (10 marks)

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