Case 2 – BEC-22806
Calculations and answers
Problem 2.1
1.
Factory overhead Service 1 Service 2 Product A Product B
210.000 93.800 38.600 182.800 124.800
% floor area 5 10 15 70
% personnel 10 18 63 9
Usage of cost center 2 1000 4000 29000
Assigning general factory overhead 5% * 210.000 10%*210.00 15%*210.000 70%210.000
10.500 21.000 31.500 147.000
New Total 93.800 + 10.500
104.300 59.600
Assigning cost center service 1 from service 1 to product a = 63/(63+9) * 104.300 = 91262,50
from service 1 to product b = 9/(63+9) * 104.300= 13.037.50
Assigning cost center service 2 from service 2 to product a = 4000/(4000+25000) * 59.600= 8.220,69
from service 2 to product b = 25000/(4000+25000) * 59.600= 51.379,31
Total cost product A = 182.800 + 31.500 + 91.262,5 + 8.220,68= 313.783,2
Total cost product B= 124.800 + 147.00 + 13.037,5 + 51.379,31= 336.216,8
Overhead rates for product A 313.783,.000 = €2,61
Overhead rates for product A 336.216,8/ 20.000 = €16,81
Calculations and answers
Problem 2.1
1.
Factory overhead Service 1 Service 2 Product A Product B
210.000 93.800 38.600 182.800 124.800
% floor area 5 10 15 70
% personnel 10 18 63 9
Usage of cost center 2 1000 4000 29000
Assigning general factory overhead 5% * 210.000 10%*210.00 15%*210.000 70%210.000
10.500 21.000 31.500 147.000
New Total 93.800 + 10.500
104.300 59.600
Assigning cost center service 1 from service 1 to product a = 63/(63+9) * 104.300 = 91262,50
from service 1 to product b = 9/(63+9) * 104.300= 13.037.50
Assigning cost center service 2 from service 2 to product a = 4000/(4000+25000) * 59.600= 8.220,69
from service 2 to product b = 25000/(4000+25000) * 59.600= 51.379,31
Total cost product A = 182.800 + 31.500 + 91.262,5 + 8.220,68= 313.783,2
Total cost product B= 124.800 + 147.00 + 13.037,5 + 51.379,31= 336.216,8
Overhead rates for product A 313.783,.000 = €2,61
Overhead rates for product A 336.216,8/ 20.000 = €16,81
