Booklet 3 Job Costing Solutions.xls - 2.70

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Prosper Plc Unnamed: 1 Unnamed: 2 Unnamed: 3 Unnamed: 4 Unnamed: 5 Unnamed: 6 Unnamed: 7
Overhead Analysis Statement
Overhead Basis of Apportionment PRODUCTION DEPARTMENTS SERVICE DEPARTMENT Total Overhead
A B C D E
Indirect Wages Allocated 3620 2850 4760 2720 700 14650
Depreciation of Machinery Value of Machinery 6500 9600 6800 3900 2200 29000
Heating and Lighting Area (sq m) 1800 2250 3000 900 1050 9000
Factory Administration No of Employees 4400 6000 7200 2400 4000 24000
Power Power (kW hrs) 4200 7000 5250 3500 1050 21000
Total Departmental Overhead 20520 27700 27010 13420 9000 97650
Reallocate Dept E No of Employees 1980 2700 3240 1080
22500 30400 30250 14500
Reallocate Dept D Direct Machine Hrs 7500 4000 3000
Total Production Overhead 30000 34400 33250
Overhead Absorption Rate
Department A Total Overhead
Total Direct Labour Hours
30000
12000
2.5
Department B Total Overhead
Total Direct Machine Hours
34400
8000
4.3
Department C Total Overhead
Total Direct Labour Hours
33250
14000
2.375
Prosper Plc
Job Costing Statement - Job A1
£ £
Direct Materials 150
Direct Labour (20 hrs x £10.50) 210
Direct Expenses 75
PRIME COST 435
Overheads
Dept A (3hrs x £2.50) 7.5
Dept B (4 hrs x £4.30) 17.2
Dept C (2 hrs x £2.38) 4.76 29.46
TOTAL COST 464.46
Profit (20% Profit Margin) 116.11499999999995
SELLING PRICE OF JOB NO 55 580.5749999999999