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4 marksOverheads and Manufacturing Accounts

CAPE Accounting Unit 2 · 2002 · Paper 2 · Question 2(a)

The Welding Company uses a job costing system with Machining and Finishing departments. The 2002 budget shows manufacturing overhead, direct labour cost, direct labour hours, and machine hours for each department.

Calculate the predetermined overhead rates for the machining department and finishing department.

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Other parts of this question

  1. 2(b)(i)Calculate the total overhead cost allocated to Job ABQ31.[3 marks]
  2. 2(b)(ii)Prepare the job cost sheet for Job ABQ31.[6 marks]
  3. 2(b)(iii)Job ABQ31 consisted of 400 units. What is the cost per unit?[1 mark]
  4. 2(c)(i)Calculate the amount of machining department overhead allocated to Job ABQ31 using Activity-Based Costing.[13 marks]
  5. 2(c)(ii)Calculate the cost per unit for the 400 units manufactured assuming that the finishing department still uses the traditional job costing method.[4 marks]
  6. 2(d)Calculate the under or over allocated manufacturing overhead for the finishing department using the predetermined rate calculated in (a) and the information…[4 marks]

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