Alta Ltd is a company that manufactures office furniture. The furniture is assembled
in their factory from components purchased from suppliers. Raw materials are
determined from the product specification, and labour hours are recorded for each
item manufactured. Overheads are allocated to the cost of inventories on the basis
of total direct labour cost.
The draft accounts at the end of December 2018 reflect the following Rand values
for direct material and direct labour costs in inventory:
Raw materials
R
Work-in progress
R
Finished goods
R
Direct materials 229 240 192 622 274 400
Direct labour – 17 510 103 800
The above work-in-progress and finished goods were manufactured in December
2018. The company was operating at normal capacity.
An extract of the trial balance of Alta Ltd for December 2018 included the following
costs:
R
Direct labour 121 310
Selling and distribution costs 120 140
Depreciation 10 250
Factory manager’s salary 25 000
Other production overheads 62 200
Rent expense 13 000
Administrative overheads 74 400
Accounting and secretarial fees 17 300
Required
4.1 Calculate the production overhead rate for December 2018. Round off
the rate to two decimal places. (9)
4.2 Calculate the value of overheads to be allocated to the cost of
inventories of Alta Ltd for December 2018.
We are a professional custom writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework.
Yes. We have posted over our previous orders to display our experience. Since we have done this question before, we can also do it for you. To make sure we do it perfectly, please fill our Order Form. Filling the order form correctly will assist our team in referencing, specifications and future communication.
1. Click on the “Place order tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
2. Fill in your paper’s requirements in the "PAPER INFORMATION" section and click “PRICE CALCULATION” at the bottom to calculate your order price.
3. Fill in your paper’s academic level, deadline and the required number of pages from the drop-down menus.
4. Click “FINAL STEP” to enter your registration details and get an account with us for record keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
5. From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.
Need this assignment or any other paper?
Click here and claim 25% off
Discount code SAVE25