Nama

Kelas
Absen

COST ACCOUNTING

:
:
:

1. Exercise 13-12
S1 = $20000 + 0,20S2
S2 = $17600 + 0,10S1

Let:

Substituting:
Solving

S1
S1
0,98S1
S1

=
=
=
=

$20000 + 0,20 ($17600 + 0,10S1)

$20000 + $3520 + 0,02S1
$23520
$24,000

Substituting:
Solving:

S2
S2
S2
S2

=
=
=
=

$17600 + 0,10S1
$17600 + 0,10 ($24000)
$17600 + $2400
$20,000

Distribution of Service Department Overhead Using The Simultaneous Method

Total
Factory overhead before
distribution of
service department
Distribution of:
Department S1
Department S2
Total Factory Overhead

Producing
Department
P1
P2

$216,600

$94,000

$85,000

$216,600

9,600
10,000
$113,600

12,000
6,000
$103,000

So, total FOH of Producing Department P1 after distribution of service department costs
is
$113,600

Laras Anindita Andarini

7A_Khusus
14

e Simultaneous Method
Service
Department
S1
S2

$20,000

$17,600

(24,000)
4,000

2,400
(20,000)

epartment costs

1. Problem 13-1
a) Using Direct Method
Based on: Hours Of Maintanance Service Used
Maintanance Cost to
=
180
X
Grinding Department
180+900
=
$12,667
Based on: Number of employees
General Factory Cost
=
6
X
Grinding Department
6+3
=
$133,333

$76,000

Maintanance Cost to
Smoothing Department

=
=

$200,000

General Factory Cost

Smoothing Department

900
X
180+900
$63,333

$76,000

3
X
6+3
$66,667

$200,000

=
=

Distribution of Service Department Overhead Using The Direct Method

Cost Account
Total Departemental Factory Overhead
before distribution of Service Departments
Distribution of Service Department Costs:
Maintenance
General Factory
Total Service Departments Cost Distributed
Total Departemental Factory Overhead
after distribution of Service Departments
Bases:
Direct Labor hours
Machine hours
Rates:
per Direct Labor hours
per Machine hours

Total

Producing
Department
Grinding
Smoothing

$681,000

$175,000

$230,000

12,667
133,333
$146,000
$681,000

63,333
66,667
$130,000

$321,000

$360,000
30,000

4,000
$
$

80.25

12

Service
Department
Maintenance
$76,000
(76,000)

b) Using Simultaneous Method

M = $76000 + [1/(6+3+1)] G
1)
Let:
M = $76000 + 0,1 G
G
= $200000 + [720/(180+900+720)] M
G
= $200000 + 0,4 M
2)
M = $76000 + 0,1 ($200000 + 0,4 M)
Substituting:
M = $76000 + $20000 + 0,04 M
Solving
0,96 M = $96000
M = $100,000
3)
G
G

Service
Department
ntenance
General Factory
$200,000

(200,000)

Distribution of Maintenance Cost:

Grinding Department
=
180
X $ 100,000 =
180+900+720
Smoothing Department
=
900
X $ 100,000
180+900+720

General Factory Department

=
720
X $ 100,000
180+900+720

= $200000 + 0,4 ($100000)

= $240,000
Distribution of Service Department Overhead Using The Simultaneou

Cost Account
Total Departemental Factory Overhead
before distribution of Service Departments
Distribution of Service Department Costs:
Maintenance
General Factory
Total Service Departments Cost Distributed
Total Departemental Factory Overhead
after distribution of Service Departments
Bases:
Direct Labor hours
Machine hours
Rates:
per Direct Labor hours
per Machine hours

Total

Producing
Department
Grinding
Smoothing

$681,000

$175,000
10,000
144,000
$154,000

$681,000

$329,000

4,000

82.25

Distribution of General Factory Cost:

c) Using Step Method
1) Grinding Department
Distribution of Maintenance Cost:
$ 10,000
=
6
X $ 240,000 = $ 144,000 1) Grinding Department
6+3+1
=
180
X $
180+900+720
2) Smoothing Department
$ 50,000
=
3
X $ 240,000 = $ 72,000 2) Smoothing Department
6+3+1
=
900
X $
180+900+720
3) Maintenance Department
$ 40,000
=
1
X $ 240,000 = $ 24,000 3) General Factory Department
6+3+1
=
720
X $
180+900+720
Using The Simultaneous Method

Producing
Department
Smoothing
$230,000
50,000
72,000
$122,000
$352,000
30,000

$ 11.73

Service
Department
Maintenance
General Factory
$76,000

$200,000

(100,000)
24,000

40,000
(240,000)

76,000

76,000

$ 38,000

76,000

$ 30,400

7,600

Distribution of Service Department

Cost Account
Total Departemental Factory Overhead
before distribution of Service Departments
Distribution of Service Department Costs:
Maintenance
General Factory
Total Service Departments Cost Distributed
Total Departemental Factory Overhead
after distribution of Service Departments
Bases:
Direct Labor hours
Machine hours
Rates:
per Direct Labor hours
per Machine hours

Distribution of Maintenance Cost:

1) Grinding Department
=
6
X $ 230,400 =
6+3
2) Smoothing Department
=
3
X $ 76,000
6+3

$ 153,600

76,800

ervice Department Overhead Using The Step Method

Total
$681,000

Producing
Department
Grinding
Smoothing
$175,000

$230,000

7,600
153,600
$161,200
$681,000

38,000
76,800
$114,800

$336,200

$344,800
30,000

4,000
$
$ 84.05

11.49

Service
Department
Maintenance
General Factory
$76,000

$200,000

(76,000)

30,400
($230,400)

3.

Problem 13-2
1)
Predetermined FOH rate
Actual activity base amount
Applied FOH

Cutting
Department
$ 2,40 / MH
10,800
25,920

Assembly
Department
$ 5,00 / DLH
12,400
62,000

2)
Actual Overhead for
Revised FOH
=
First Six Months
Actual Activity Base
First Six Months
a. Cutting Department
=
$ 22600+ $ 23400
=
10800 + 9200
b.

c.

3)

Projeted Overhead for

Second Six Months
Projeted Activity Base
Second Six Months

+
+

$ 46000
20,000

2.3

Assembly Department
=
$ 56800 + $ 57500
12400 + 13000

$ 114300
25,400

4.5

Finishhing Department
=
$ 98500 + $ 96500
16500 + 16000

$ 195000
32,500

6.0

($ 2,3 - $ 2,4) X 10800

($ 4,5 - $ 5,0) X 12400
($ 6,0 - $ 1,6) X 16500

=
=
=

Cutting Department
Assembly Department
Finishing Department
Increase in apllied FOH

FOH Applied-Cutting Department

WIP-Cutting Department
FOH Applied-Assembly Department
WIP-Assembly Department
WIP-Finishing Department
FOH Applied-Finishing Department

-1080
-6200
72600
65,320

1,080
1,080
6,200
6,200
72,600
72,600

Finishing
Department
$ 1,60 / DLH
16,500
26,400

ojeted Overhead for

Second Six Months
ojeted Activity Base
Second Six Months
per machine hour

per DL hour

per DL hour