Booklet 3 Job Costing Solutions.xls - 2.71

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Ben Turpin Plc Unnamed: 1 Unnamed: 2 Unnamed: 3 Unnamed: 4 Unnamed: 5
Overhead Analysis Statement
Overhead Basis of Apportionment PRODUCTION DEPARTMENTS SERVICE DEPARTMENT Total Overhead
Machining Finishing Warehouse
Total Departmental Overhead 50000 40000 20000 110000
Reallocate Warehouse 17000 3000
Total Production Overhead 67000 43000
Overhead Absorption Rate
Workshops Total Overhead
(Machining + Direct Material Cost
Finishing)
110000 x 100
200000
0.55
Ben Turpin Plc
Job Costing Statement - Job No 876
0 £
Direct Materials
Machining 150
Finishing 30 180
Direct Labour
Machining (0 hrs x £12) 0
Finishing (2 hrs x £10) 20 20
Direct Expenses 0
PRIME COST 200
Overheads
Machining (£150 x 55%) 82.5
Finishing (£30 x 55%) 16.5 99
TOTAL COST OF JOB NO 876 299
New Overhead Absorption Rate
Machining Total Overhead
Total Direct Machine Hours
67000
10000
6.7
Finishing Total Overhead
Total Direct Labour Hours
43000
4000
10.75
Ben Turpin Plc
New Job Costing Statement - Job No 876
£ £
Direct Materials
Machining 150
Finishing 30 180
Direct Labour
Machining (0 hrs x £12) 0
Finishing (2 hrs x £10) 20 20
Direct Expenses 0
PRIME COST 200
Overheads
Machining (10 hrs x £6.70) 67
Finishing (2 hrs x £10.75) 21.5 88.5
TOTAL COST OF JOB NO 876 288.5
Add Profit (20% x Total Cost) 57.7
346.2
Add VAT (20%) 69.24
SELLING PRICE OF JOB NO 876 415.44
Over/Under Absorbed
Overhead Absorbed £6.70 x 11000 hrs £10.75 x 3500 hrs
Actual Overhead Absorbed 73700 37625
Budgeted Overhead Absorbed 67000 43000
6700 -5375
(Over Absorbed) (Under Absorbed)
Ben Turpin Plc
Overhead Analysis Statement
Overhead Basis of Apportionment PRODUCTION DEPARTMENTS SERVICE DEPARTMENT Total Overhead
Machining Finishing Warehouse
Indirect Materials Allocated 6000 2000 0 8000
Supervision No of Workers 12000 6000 2000 20000
Power kW Hours 4000 1000 0 5000
Rent Area (sq m) 30000 18000 12000 60000
Insurance - Machinery Value of Machinery 6000 1000 0 7000
Total Departmental Overhead 58000 28000 14000 100000
Reallocate Warehouse No of Employees 10500 3500
Total Production Overhead 68500 31500