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ADARA MAJA

OVERHEAD ANALYSIS SHEET


Production Cost Centres

Items Machine Centre Machine Centre


Basis Total X Y
(£) (£) (£)
Indirect Wages & Supervision Allocation 6,080,000 1,000,000 1,000,000
Indirect Materials Allocation 1,420,000 500,000 805,000
Primary Allocation:
Lighting and heating Area 500,000 100,000 50,000
Property taxes Area 1,000,000 200,000 100,000
Insurance of machinery BV of Machine 150,000 80,000 50,000
Depreciation of machinery BV of Machine 1,500,000 800,000 500,000
Insurance of buildings Area 250,000 50,000 25,000
Salaries of Works Mgt No. of Employees 800,000 240,000 160,000
11,700,000 2,970,000 2,690,000
Secondary Allocation:
Material Procurement Material Issues 880,000 660,000
Factory Support Direct Labour 450,000 450,000
11,700,000 4,300,000 3,800,000
Machine Hour 2,000,000 1,000,000
Direct Labour Hour
Machine Hour OAR £2.15 £3.80
Labour Hour OAR

Bases of Allocating Overheads


Machine Centre Machine Centre
Total X Y
Book value of Machine 15,000,000 8,000,000 5,000,000
Area occupied 50,000 10,000 5,000
Number of Employees 1,000 300 200
Direct labour hours 4,000,000 1,000,000 1,000,000
Machine Hours 3,000,000 2,000,000 1,000,000
Material Issues 8,000,000 4,000,000 3,000,000
Labour Hours 4,000,000 1,000,000 1,000,000
T
on Cost Centres Service Cost Centres
Material
Assembly Procurement Factory Support
(£) (£) (£)
1,500,000 1,100,000 1,480,000
105,000 0 10,000

150,000 150,000 50,000


300,000 300,000 100,000
10,000 5,000 5,000
100,000 50,000 50,000
75,000 75,000 25,000
240,000 80,000 80,000
2,480,000 1,760,000 1,800,000

220,000 -1,760,000
900,000 -1,800,000
3,600,000 0 0

2,000,000

£1.80

Material
Assembly Procurement Factory Support
1,000,000 500,000 500,000
15,000 15,000 5,000
300 100 100
2,000,000

1,000,000
2,000,000

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