Page 166 - F2 - MA Integrated Workbook STUDENT 2018-19
P. 166
Chapter 7
Test your understanding 3
$
Machining 691,500
Assembly 299,500
Finishing 189,000
Working:
Machining Assembly Finishing Stores Maintenance
Allocated 600 250 150 100 80
costs
Stores 40 30 20 (100) 10
apportionment
Maintenance 49.5 18 18 4.5 (90)
apportionment
Stores 2 1.5 1 (4.5) –
apportionment
Total 691.5 299.5 189 – –
Test your understanding 4
The overhead absorption rate for the linen services activity is $6.74 per
occupied room night.
Budgeted number of occupied room nights
= 400 rooms × 365 nights × 85% = 124,100 occupied room nights
Overhead absorption rate = $836,000/124,100 = $6.74
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