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Need help with my writing homework on Mangament Accounting. Write a 3000 word paper answering;
Need help with my writing homework on Mangament Accounting. Write a 3000 word paper answering; Service Dept Y cost apportioned 20% 30% 50%
The first step is to assign an appropriate cost driver to the overheads so as to determine the appropriate departmental overhead rate, the following table summarises the appropriate cost drivers for the cost objects:
Overheads cost driver
1. Rent and rates floor area occupied
2. Machine insurance machine value
3. Telephone charges labour hours
4. Depreciation machine value
5. Production supervisor's salaries labour hours
6. Heating and lighting labour hours
From the above table it is evident that the rent and rates will be charged to each department with reference to floor area, machine insurance cost will be charged using the machine value in each department, telephone charges, supervisor salaries and heat and lighting will be charged with reference to labour hours.
