Page 103 - Microsoft Word - 00 ACCA F2 Prelims.docx
P. 103
Accounting for overheads
Overhead for electricity cost for production cost centre 1:
$13,000
–———— × 20,000 = $10,000
26,000
All other calculations are done the same way.
The overhead analysis sheet now looks like this:
Overhead item Basis Prod cost Prod cost Service Total
centre 1 centre 2 cost centre overhead
$ $ $ $
Manager salary Allocation 50,000 55,000 48,000 153,000
Indirect materials Allocation 2,500 12,000 0 14,500
Equipment Allocation 5,700 4,600 0 10,300
maintenance
Electricity Machine hours 10,000 3,000 0 13,000
Cleaning Floor area 2,500 2,250 250 5,000
Human Staff numbers 8,000 6,080 1,920 16,000
resources
–––––––– –––––––– –––––––– ––––––––
Total overhead 78,700 82,930 50,170 211,800
–––––––– –––––––– –––––––– ––––––––
97
