BolcoLindberg & Meyer

MO TO(A) TO(B)COST CATEGORIES/TRANSACTIONS MAT.OVER PO DEP A PO DEP B

From the credit sides of the cost category accounts: 35,940 294,600 351,300

MATERIALS, A 198,000MATERIALS, MO 2,000 2,000MATERIALS, B 300,000LABOUR, A, MO 1,000 1,000LABOUR, A, TO(A) 500 500LABOUR, B, TO(B) 1,500 1,500LABOUR, PROD.DEP(A) 249,000LABOUR, PROD.DEP(B) 348,000DEPRECIATION, MO 500 500DEPRECIATION, FO 1,000DEPRECIATION, TO(A) 15,000 15,000DEPRECIATION, TO(B) 20,000 20,000DEPRECIATION, AO 1,000NOTIONAL INTEREST, MO 400 400NOTIONAL INTEREST, TO(A) 600 600NOTIONAL INTEREST, FO 300NOTIONAL RENTS, TO(A) 13,000 13,000NOTIONAL RENTS, TO(B) 10,000 10,000NOTIONAL RENTS, AO 8,000

39,840 323,700 382,800Allocated to prod.dep. A -15,840Allocated to prod.dep. B -24,000

0 -323,7000 -382,800

0

MO TO(A) TO(B)MAT.OVER PO DEP A PO DEP B

OVERHEAD RATES: 8.00% 130.00% 110.00%

FULL COST CALCULATION:

DM 100.00MATERIALS OVERHEAD 8.00DL A 50.00 a)DL B 200.00 b)PO DEP A 65.00PO DEP B 220.00

TOTAL MANUF. COST 643.00SELLING OVERHEAD 160.75ADMIN OVERHEAD 77.16FULL COST 880.91

FO AO TILLV(A) TILLV(B) HELFABRIKATLAGERSELLING ADMIN PROD.DEP A PROD. DEP B FG INVENTORY

459,035 211,960

198,000

300,000

249,000348,000

1,000

1,000

300

8,000460,335 220,960

15,84024,000

323,700382,800

786,540 1,054,800-786,540 786,540

-1,054,800 1,054,8000 0 1,841,340

FO AOSELLING ADMIN

25.00% 12.00%

1101.141174.55

Johansson & Samuelson

Costs Cost CentreAmount Production departments Purchasing Admin.(€) and materials

A B C S:a storageIndirect labour 525 100 70 175 345 15 75Payroll fringe costs 161 30 25 50 105 5 24Auxiliary material 105 36 28 33 97Tools 22 8 6 7 21 1Heating 45 4 16 10 30 4 5Light and energy 53 22 14 8 44 2 4Maintenance 38 13 10 15 38Depreciation 72 15 18 21 54 4 5Interest Expenses 34 6 9 10 25 3 2Rents 85 12 17 21 50 7 19Telecommunications 26 10Travel and representation 35 22Office materials 21 4 12Insurance 25 4 5 7 16 3 1Miscellaneous 17 3 4 3 10 1 4Sum. indirect costs 1264 253 222 360 835 49 183

Allocation basis:Direct labour 180 240 210 630Direct materials 780Manufacturing costs 2294

Manufacturing overhead rate 141% 93% 171%

Materials overhead rate 6%

Admin. & selling overhead rate 8%

Selling

9027

8

63

949

1613

552

197

2294

9%

Success Direct Input dataUpchurch pp. 153-162

Cost information Sum Cost centre

Bookkeeping Secretarial

Supervisory salaries 103000 25000 28000Indirect labour 159000 40000 50000Lightning and heating 6000 2400 2700Computer consumables 14000 4200 7000Insurance 8000 2000 1600Stationary 60000 4800 7200Property Costs 36000 14400 16200Phone/fax/email 48000 19200 24000Totals 434000 112000 136700Allocated to: Reprographic 21892 76622Allocated to: Dispatch 38572 48214Total fördelade på huvudkostnst 172464 261536 Excursion:

Algebraic reallocationOther data among the service departments:

Computer hours 200000 60000 100000Floor area (sq metres) 20000 8000 9000Book value of insured assets 200000 50000 40000No of telephone extensions 50 20 25No. Of stationary requisitions 500 40 60Estimated direct labour hours 34000 15000 19000Estimated direct labour costs 412000 178000 234000Number of different courses offe 26 10 16Estimated total number of course 9000 4000 5000No of reprographic requests 1000 200 700No. Of dispatches 2000 800 1000Number of exercises 100000No. Of dispatchesTraditional absorption rate calculation

Data given for two coursesIntroduction Advanced shorthand

to spreadsheets

Computer hours/main cost centreBookkeeping 195 0Secretarial 5 0Direct labour hours/ main cost centreBookkeeping 10 0Secretarial 1 30Direct labour costs/main cost centreBookkeeping 120 0Secretarial 12 360

Direct material costs 50 30Number of exercises 6 20

Assignment: calculate units cost for both courses (introduction to spreadsheets) and advanced shorthand

Unit cost 11.50 13.77

Direct Material 50 30Direct LabourBookkeeping 120 0Secretarial 12 360u:m of prime cost 182 390OverheadBookkeeping 114.98Secretarial 13.77 412.95Cost/unit 310.74 802.95

Reprographic Dispatch Absorption basis

30000 20000 Data given24000 45000 Data given

600 300 Floor area (sq.metres)700 2100 Computer hours

4000 400 Book value of assets insured45600 2400 No of stationary requisitions

3600 1800 Floor area (sq.metres)960 3840 Number of telephone extensions

109460 758401094686786

Algebraic reallocation Grafiska tj Expeditionamong the service departments: 118226 87663 Tools Options Calculation Iteration OK

10000 300002000 1000

100000 100001 4

380 20

100200