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factory overhead should be allocated on basis of their apportiomen
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What is the difference between overhead allocation with overhead apportionment?
The following are the differences between allocation and apportionment. 1. Allocation costs are directly allocated to cost centre. Overhead which cannot be directly allocated are apportioned on some suitable basis. 2. Allocation allots whole amount of cost to cost centre or cost unit where as apportionment allots part of cost to cost centre or cost unit. 3. No basis required for allocation. Apportionment is made on the basis of area, assets value, number of workers etc.
How and why interest expense is allocated between measurement periods?
Interest expenses are allocated between measurements periods since most interest charges are applied to the accounts on quarterly basis. Although most interest is measured on annual basis, the charges are applied quarterly.
What is the predetermined manufacturing overhead rate?
The cost of the direct materials that can be used to manufacture the table are as follows. These cost are on a per unit basis. Table Top $ 1,700.00 Table Leg $ 500.00 Drawer $ 370.00 Assume a $35 per hour wage rate to the assembly employees. The company uses a job order costing system and applies manufacturing overhead to jobs based on direct labor hours. The company estimates that there will be 12 direct labor hours worked during the month. The estimated manufacturing overhead cost for the month is: a. Factory supervisor salary per month $ 3,500.00 b. Rent for the factory per month $ 1,300.00 c. Depreciation of factory equipment per month $ 600.00 Total Estimated manufacturing overhead $ 5,400.00
How do you work an overhead application backwards?
The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The following divisional information is presented for your review:Division ADivision BActual machine hours22,500?Estimated machine hours Overhead application: Working backward20,000?Overhead application rate$4.50$5.00Actual overhead$110,000?Estimated overhead?$90,000Applied overhead?$86,000Over- (under-) applied overhead?$6,500Find the unknowns for each of the divisions.
What is overhead apportionment?
spreading common costs over cost centres on the basis of benefit received
What is the difference between overhead allocation with overhead apportionment?
The following are the differences between allocation and apportionment. 1. Allocation costs are directly allocated to cost centre. Overhead which cannot be directly allocated are apportioned on some suitable basis. 2. Allocation allots whole amount of cost to cost centre or cost unit where as apportionment allots part of cost to cost centre or cost unit. 3. No basis required for allocation. Apportionment is made on the basis of area, assets value, number of workers etc.
On what basis are the number of seats allocated in loksabha to the different states?
On the basis of population.
The great compromise finally allocated representation on the basis of?
population in the House and equality in the Senate.
How and why interest expense is allocated between measurement periods?
Interest expenses are allocated between measurements periods since most interest charges are applied to the accounts on quarterly basis. Although most interest is measured on annual basis, the charges are applied quarterly.
Where in you k is mobile code 771?
Mobiles are not allocated on an area-by-area basis. The number could be anywhere in the UK !
What is the predetermined manufacturing overhead rate?
The cost of the direct materials that can be used to manufacture the table are as follows. These cost are on a per unit basis. Table Top $ 1,700.00 Table Leg $ 500.00 Drawer $ 370.00 Assume a $35 per hour wage rate to the assembly employees. The company uses a job order costing system and applies manufacturing overhead to jobs based on direct labor hours. The company estimates that there will be 12 direct labor hours worked during the month. The estimated manufacturing overhead cost for the month is: a. Factory supervisor salary per month $ 3,500.00 b. Rent for the factory per month $ 1,300.00 c. Depreciation of factory equipment per month $ 600.00 Total Estimated manufacturing overhead $ 5,400.00
How do you work an overhead application backwards?
The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The following divisional information is presented for your review:Division ADivision BActual machine hours22,500?Estimated machine hours Overhead application: Working backward20,000?Overhead application rate$4.50$5.00Actual overhead$110,000?Estimated overhead?$90,000Applied overhead?$86,000Over- (under-) applied overhead?$6,500Find the unknowns for each of the divisions.
What is overhead apportionment?
spreading common costs over cost centres on the basis of benefit received
Why overhead absorption rate is important?
In absorption costing, overhead absorption rate or blanket rate is key to spread all overheads on production of volume of product, because if we don't have the overhead absorption rate manufacturing overhead cannot be spread or there is no basis for allocation of overheads on manufactured units.
What is a cost sheet in cost and works accounting?
cost sheet is division of three parts like 1.factory overheads,2.administration overheads,3.selling & distribution overhead. on the basis of this total exact cost is caculated,as it is too important for and cost & work accountant.
What are the merits and demerits of scaling?
Branches are allocated to cadets on the basis of their qualification that they have acquired from their respective engineering/science college. These cadets have to select their branches online and then they will be called for service selection board on the basis of their calibre. There they will go through various activities which will make them get selected for joining academy. In academy they have to go through various processes for getting officially allocated.
How do you calculate applied overhead?
Many companies will have a 'historical' OVHD rate, or calculate a budgeted rate.Presuming budgeted or est-ovhd cost of 750,000Presuming budgeted or est-direct-labor 500,000Overhead rate = estimated overhead costs/estimated activity base750,000 / 500,000Overhead rate =1.5 or 150%Since job-labor is the basis for Applied Overhead,Applied overhead = rate from above x actual direct labor.1.5 510,000Applied overhead = 765Prorate the overhead variance to the appropriate accounts765 - 750 = variance of 15K
