Professional Documents
Culture Documents
Created by:
Accounting Education IUP 2016
Muflihatun Nisa’ 7101416066
Feri Subekti 7101416216
Lecturer:
Badingatus Solikhah, S.E., M.Si., Akt., CA
ECONOMICS EDUCATION
FACULTY OF ECONOMICS
UNIVERSITAS NEGERI SEMARANG
2018
A. DEFINITION OF OVERHEAD COST BUDGET
The manufacturing overhead budget contains all manufacturing costs other than the costs
of direct materials and direct labor (which are itemized separately in the direct materials
budget and the direct labor budget). The information in the manufacturing overhead
budget becomes part of the cost of goods sold line item in the master budget.
Also, the total of all costs in this overhead budget are converted into a per-unit overhead
allocation, which is used to derive the cost of ending finished goods inventory, and which
in turn is listed on the budgeted balance sheet. The information in this budget is among
the most important of the various departmental budget models, since it may contain a large
proportion of the total amount of a company's expenditures.
This budget is typically presented in either a monthly or quarterly format.
So, can conclude that The budget regarding the costs in the factory issued by the company
in the framework of the production process, except for direct raw material costs and direct
labor costs.
Example of the Manufacturing Overhead Budget
The administrative salaries line item contains the wages paid to manufacturing supervisors,
the purchasing staff, production clerks, and logistics planning staff, and gradually
increases over time to reflect changes in pay rates. The depreciation expense is relatively
fixed, though there is an increase in the third quarter that reflects the purchase of new
equipment. Both the freight and supplies expenses are closely linked to actual production
volume, and so their amounts fluctuate in conjunction with planned production levels. The
rent expense is a fixed cost, but does increase in the fourth quarter to reflect a scheduled
rent increase.
CHASE EXAMPLE 1
During the production process, in the service / helper section an overhead fee of Rp. 1,500,000
will arise. The services provided are used by several parts in proportion:
Production I = 40%
Production II = 25%
Production III = 35%
Based on the proportion of the use of these services, calculate the overhead costs to each section !
ANSWER OF CHASE EXAMPLE 1
Overhead costs can be allocated to each section:
CHASE EXAMPLE 2
PT EVO during 2017 it is estimated that the following overhead costs will arise:
Production Section: Production I = Rp. 15,000,000
Production II = Rp.22,000,000
Production III = Rp. 16,000,000
Service / helper section: Service / helper section I = Rp. 1,800,000
Service / auxiliary part II = Rp. 4,500,000
The service section is used by the three parts of the production with the following proportions:
CHASE EXAMPLE 3
PT OPTIMA produces 2 types of goods, namely A and B. Data on production plans and service /
auxiliary parts:
There are 2 parts of production, namely the production part I and II, as well as the service / auxiliary
section, namely the reparation section. The production part I is only passed by item A, while the
production part II is passed by both types of goods (A and B). The unit of activity for each section
is as follows:
The standard numbers in production section II are:
From the raw material budget data is obtained about the planned raw material costs for each type
of goods as follows:
Whereas from the budget the labor costs obtained data about the plan of direct labor costs for each
type of goods as follows: