Page 165 - F2 - MA Integrated Workbook STUDENT 2018-19
P. 165
Accounting for overheads
Test your understanding answers
Test your understanding 1
Match the overhead costs to the most appropriate basis of cost
apportionment. An apportionment basis may be selected more than once.
Overhead cost Apportionment basis
Canteen costs Number of employees
Cleaning of factory premises Floor area
Power Machine running hours
Rent Floor area
Insurance of plant and machinery Plant and equipment at cost
Test your understanding 2
Total Machining Assembly Finishing
$ $ $ $
Maintenance cost 38,000 19,000 13,300 5,700
Working:
Overhead cost per maintenance hour = $38,000/2,000 hours = $19
Machining = $19 × 1,000 hours = $19,000
Assembly = $19 × 700 hours = $13,300
Finishing = $19 × 300 hours = $5,700
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