Menu
Question Tag: Overhead Apportionment
Search
500
+ past questions and counting.
- 10 Marks
MI – May 2018 – L1 – SB – Q4a – Costing Methods
Apportionment of service department overhead and career paths for accountants in IT-based environments
Question
a. The overhead costs of HABA LIMITED is analyzed below:
| Production Departments | N |
|---|---|
| Weaving | 1,000,000 |
| Spinning | 500,000 |
| Service Departments | |
| Admin | 80,000 |
| Maintenance | 60,000 |
The administrative overhead costs are to be apportioned on the basis of Weaving 50%, Spinning 30%, and Maintenance 20%, while the Maintenance overhead costs are to be apportioned on the basis of Weaving 60%, Spinning 20%, and Administrative 20%.
You are required to apportion service departments’ overhead to production departments using the continuous apportionment method. (10 marks)
Find Related Questions by Tags, levels, etc.
Report an error
- 1 Marks
MI – May 2021 – L1 – SA – Q3 – Costing Methods
Identify the definition of overhead apportionment.
Question
Overhead apportionment is a process of:
A. Charging costs to a number of cost centres or units
B. Direct allocation of costs to cost centres or cost units
C. Accounting for some portion of costs and carrying forward the balance
D. Sharing costs into direct and indirect elements
E. Differentiating between variable and fixed costs
Find Related Questions by Tags, levels, etc.
- Tags: Cost Allocation, Costing Methods, Overhead Apportionment
- Level: Level 1
- Topic: Costing Methods
- Series: MAY 2021
Report an error
- 10 Marks
MI – May 2018 – L1 – SB – Q4a – Costing Methods
Apportionment of service department overhead and career paths for accountants in IT-based environments
Question
a. The overhead costs of HABA LIMITED is analyzed below:
| Production Departments | N |
|---|---|
| Weaving | 1,000,000 |
| Spinning | 500,000 |
| Service Departments | |
| Admin | 80,000 |
| Maintenance | 60,000 |
The administrative overhead costs are to be apportioned on the basis of Weaving 50%, Spinning 30%, and Maintenance 20%, while the Maintenance overhead costs are to be apportioned on the basis of Weaving 60%, Spinning 20%, and Administrative 20%.
You are required to apportion service departments’ overhead to production departments using the continuous apportionment method. (10 marks)
Find Related Questions by Tags, levels, etc.
Report an error
- 1 Marks
MI – May 2021 – L1 – SA – Q3 – Costing Methods
Identify the definition of overhead apportionment.
Question
Overhead apportionment is a process of:
A. Charging costs to a number of cost centres or units
B. Direct allocation of costs to cost centres or cost units
C. Accounting for some portion of costs and carrying forward the balance
D. Sharing costs into direct and indirect elements
E. Differentiating between variable and fixed costs
Find Related Questions by Tags, levels, etc.
- Tags: Cost Allocation, Costing Methods, Overhead Apportionment
- Level: Level 1
- Topic: Costing Methods
- Series: MAY 2021
Report an error