Management Accounting By Paresh Shah Oxford University Press Chapter No.

Chapter Name 5 Direct Expenses And Overhead

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Particulars S T Total

Particulars Allocated (As Original from Primary Overhead Analysis Sheet) Apportioned: S1 : S2 S1 S2 S 1 (a) Total

S1

S2

(i) Overhead Distribution Summary: Particulars Total X Y Direct Materials 0 Direct Wages 0 Factory Rent 0 Power 0 Depreciation 0 Other Overheads 0 Total 0 0

A1

A2

(ii) Redistribution of Service Departments Expenses: Total X Total Overheads 0 Department A1 overhead apportioned Department A2 overhead apportioned Department A1 overhead apportioned Department A2 overhead apportioned Department A1 overhead apportioned Total 0

Y 0 0

Z 0

A1 0

(iii) Machine Hour Rate: Particulars X Y Direct Materials Direct Wages Overhead 0 Total Rs. 0 Machine Hours 1 Machine Hour Rate Rs. 0.00

0 0 1 0.00

0 0 1 0.00

A2 0

Overhead Distribution Sheet Particulars Allocated Expenses: Indirect labour Maintenance material Superintendents Salary Miscellaneous supplies Cost and Payroll Salaries Total Apportioned expenses: Total Production Machine (Rs.) Departments Packing (Rs.)

0 0

0 0

Distribution of Service Department Expenses Particulars Total Expenses [as per (a)] Transfer from stores and maintenance Transfer from General Plant Transfer from stores and maintenance Transfer from General Plant Transfer from stores and maintenance Transfer from General Plant Total Production Machine (Rs.) 0 Departments Packing (Rs.) 0

Service. Gen Plant (Rs.)

Departments Stores & Maint. (Rs.)

0 0

0 0

Service. Gen Plant (Rs.) 0

Departments Stores & Maint. (Rs.) 0

2 3 4 5 6 7

Computation of Machine hour rate for a Printing Machine for March 2007. Particulars Amount Rs. Depreciation: Cost of Machine Less: Anticipated Residual Value Estimated Life(yrs) 1 Annual Depreciation 0 Per month Depreciation 0 Cost of Repairs materials and Wages Supervisor's Salary Electricity Charges Other Fixed Costs Labour Costs Overtime costs on Jobs Total 0 Working Hours: Less: Adjustment for (i)Trial Runs, proofing and Job Setting (ii) Normal Repairs and Maintance Add: Overtime Hours Effective Working Hours Rate Per Machine Hour 0 1 1 0.00

Statement of Cost for Manufacture of 14 HP Motor Cars Particulars Opening Stock of R.M. Add: Purchases Carriage inward Less: Closing Stock Consumption of R.M. Wages Prime cost Works overhead Works costs / Factory cost Establishment and general charges Cost of production Selling costs @ 15% on cost of production Total Cost

Rs.(Lakhs)

Rs.(Lakhs)

0 0 0 0 0

Computation of price quotation for a motor car Particulars R.M. Wages Prime cost Work overhead @ 125% on wages Work costs / Factory cost Establishment And General expenses @ 8% of Works cost Cost of Production Selling cost @ 15% on cost of production Cost of Sales / Total cost Profit @ 25% on total cost Selling price

Rs.

0 0

0 0 0

Computation of comprehensive Machine Hour Rate for the year Particulars Rs. 1. Standing Charges Rent, Heat and Light Supervision Depreciation Cost of Reserve Equipment Labour hours during setting and Adjustment Total Standing Charges 0 Hourly Rate for Standing Charges 2. Running Expenses Power Labour Total per Hour 0.00

Computation of Machine Hour Rate Total Hours = Particulars 1. Number of Machines 2. Standing Charges (a) Rent (b) Lighting Charges per year (c) Supervisors Salary Total Standing Charges Standing charges per hour 3. Variable or Running charges per hour (a) Depreciation
(b) Repairs and maintenance cost

1 Large Machine Small Machine

0 0

0 0

(c) Power Total Machine Rate

0.00

0.000