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Unit

In:

Submitted By Samharlaar
Words 322
Pages 2
Location

Allocated costs, charging costs to a cost centre that have been directly incurred

Example: personnel costs, you put all the costs here, from which you know that they have a link with personnel. Paid salaries, pension rates, lease car for workers, yearly part with all personnel, telephone invoice for the workers and so on.

* Apportioned costs:
Costs centres are charged with a proportion of overhead.
Example deletion:
Housing costs first have to be allocated in the right way. Then housing costs have to the different departments ( economie, gezondheid, techniek) after that each course(ibs) is charged with a portion of overhead. Last step is to divided those costs over the student ibs.

14.1 | Dept a (zagerij) | Dept b (schurerij) | Dept c( verferij) | | Rent and rates7.210 | 300/700x7210= 3090 | 150/700x7210= 1545 | 250/700x7210= 2575 | | Depreciation of machinery 10800 | 25/50x10800= 5400 | 15/50x10800= 3240 | 10/50x10800= 2160 | | Supervisors salary12750 | 8/15x12750= 6800 | 4/15x10800= 3400 | 3/15812750=2550 | | Machine insurance750 | 25/50x750= 375 | 15/50x750= 225 | 10/50x750= 150 | | Total apportioned | 15665 | 8410 | 7435 | | Total hours | 8(37*8)= 14208 | 4(37*48)= 7104 | 3(37x48)= 5328 | | Absorption rate | 15665/14208 = 1,10 | 8410/7104=1,18 | 7435/5328 = 1,40 | |

Example: product zeze is made by dept. a(zagerij) and dept. c (verferij)
Direct material( wood) 40
Direct labour: 2 hours in dept. a at 5 per hour
½ hour in dept. c at 6 per hour

What is the costs price of zeze?

Cost price calculation:

Direct costs:
Materials: $ 40
Labour dept a $ 10 ( 2x5)
Labour dept c $ 3 ( 1/2x6)

Total direct costs $ 53

Indirect costs dept a 2,20( 2x1,10 absorption rate per labour hour)
Dept c 0,70 ( 1/2x1,40)

Total indirect costs $ 2,90
Total price zeze

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