Professional Documents
Culture Documents
CHAPTER
8
Biaya
Overhead
Pabrik
7 -2
Objectives
Objectives
1. Describe theAfter
difference
between
support
studying
this
After studying this
departmentschapter,
and producing
departments.
you
should
chapter, you should
2. Calculate single be
and
multiple
changing
rates
able
to:
be able to:
for a support department.
3. Allocate support-department costs to
producing departments using the direct,
sequential, and reciprocal methods.
4. Calculate departmental overhead rates.
7 -3
Types
Types of
of Departments
Departments
Producing
departments are
directly responsible for
creating the products or
services sold to
customers.
7 -4
Types
Types of
of Departments
Departments
Supporting
departments provide
essential support
services for producing
departments.
Maintenance, grounds,
engineering, personnel, storage
Steps
Steps in
in Allocating
Allocating Support
Support Department
Department
Costs
Costs to
to Producing
Producing Departments
Departments
1. Departmentalize the firm.
2. Classify each department as a support
department or a producing department.
3. Trace all overhead costs in the firm to a
support department or producing
department.
4. Allocate supports department costs to the
producing departments.
Continued
Continued
7 -5
Steps
Steps in
in Allocating
Allocating Support
Support Department
Department
Costs
Costs to
to Producing
Producing Departments
Departments
5. Calculate predetermined overhead rates
for the producing departments.
6. Allocate overhead costs to the units of
individual products through the
predetermined overhead rates.
7 -6
Possible Driver
Accounting
Number of transactions
Cafeteria
Number of employees
Engineering
Maintenance
Payroll
Number of employees
Personnel
7 -7
7 -8
Objectives
Objectives of
of Allocation
Allocation
1. To obtain a mutually agreeable price.
2. To compute product-line profitability.
3. To predict the economic effects of planning
and control.
4. To value inventory.
5. To motivate managers.
7 -9
Note
Note Objective
Objective 5:
5: Allocations
Allocations can
can
be
be used
used to
to motivate
motivate managers.
managers.
7 -10
AND
7 -11
94,500
67,500
108,000
270,000
$ 6,210
26,190
$32,400
$0.12 per page
7 -12
92,000
$0.12
$11,040
Tax Department
65,000
0.12
7,800
115,000
0.12
13,800
MAS Department
Total
272,000
$32,640
Total
Fixed
Costs
Amount
Allocated to
Each
Department
7,875
0.20
$26,190
$ 5,238
22,500
0.57
26,190
14,928
9,000
0.23
26,190
6,024
Peak
Number
of Pages
Audit
Tax
MAS
Total
7 -13
39,375
$26,190
7 -14
Number of
Pages x
Fixed Cost
Total
$0.023 + Allocation = Charges
Audit department
$2,116
$ 5,238
$ 7,354
Tax department
1,495
14,928
16,423
MAS department
2,645
6,024
8,669
$6,256
$26,190
$32,446
Total
7 -15
Budgeted
Budgeted costs.
costs.
7 -16
7 -17
7 -18
Total
Rate
Allocated
= Charges
Audit Department
94,500
$0.12
$11,340
Tax Department
67,500
0.12
8,100
108,000
0.12
12,960
MAS Department
Total
270,000
$32,400
Total
Rate
Allocated
= Charges
Audit department
92,000
$0.12
$11,040
Tax department
65,000
0.12
7,800
115,000
0.12
13,800
MAS department
Total
272,000
7 -19
$32,640
Choosing
Choosing A
AService
Service Department
Department
Cost
Cost Allocation
Allocation Method
Method
The three methods for allocating service
department costs to producing departments
are:
The Direct Method
The Sequential Method
The Reciprocal Method
7 -20
Data
Data for
for Illustrating
Illustrating Allocation
Allocation Methods
Methods
Support Departments
Direct costs*
Producing Departments
Power
Maintenance
Grinding
Assembly
$250,000
$160,000
$100,000
$ 60,000
-----
200,000
600,000
200,000
1,000
-----
4,500
4,500
Normal activity:
Kilowatt-hours
Maintenance hours
*For a producing
7 -21
7 -22
Direct
Direct Method
Method of
of Allocation
Allocation
Power
Maintenance
Grinding
Assembly
7 -23
Direct
Direct Method
Method of
of Allocation
Allocation
Power
Maintenance
Grinding
Assembly
7 -24
0.75
200,000
(600,000 + 200,000)
Maintenance =
4,500
(4,500 + 4,500)
4,500
(4,500 + 4,500)
Direct
DirectMethod
Method
Assembly
0.25
0.50
0.50
7 -25
Direct costs
Power a
---
187,500
62,500
---
-160,000
80,000
80,000
Maintenance b
$
$367,500 $202,500
7 -26
Sequential
Sequential Method
Method of
of Allocation
Allocation
STEP 1: Rank service departments
Power
Maintenance
7 -27
Sequential
Sequential Method
Method of
of Allocation
Allocation
STEP 2
Power
Maintenance
Grinding
Assembly
7 -28
Sequential
Sequential Method
Method of
of Allocation
Allocation
STEP 2
Maintenance
Grinding
Assembly
7 -29
0.20
Sequential
SequentialMethod
Method
0.60
7 -30
4,500
(4,500 + 4,500)
4,500
(4,500 + 4,500)
Sequential
SequentialMethod
Method
0.50
0.50
7 -31
Direct costs
Power a
50,000
150,000
50,000
---
-210,000
105,000
105,000
Maintenance b
$
$355,000 $215,000
7 -32
Reciprocal Method
7 -33
---
200,000
600,000
200,000
1,000
---
4,500
4,500
---
0.20
0.60
0.20
0.10
---
0.45
0.45
7 -34
7 -35
7 -36
$250,000
$160,000
-271,429
54,286
162,857
54,286
271,429
-214,286
96,429
96,429
Maintenance
Total
from
from
Slide 7-35 Slide 7-34
$100,000 $ 60,000
$359,286 $210,715
7 -37
Comparison
Comparison of
of Support
Support Department
Department Cost
Cost
Allocations
Allocations Using
Using the
the Direct,
Direct, Sequential,
Sequential, and
and
Reciprocal
Reciprocal Methods
Methods
Direct costs
Allocated from power
Allocated from maintenance
Total cost
Direct Method
Grinding Assembly
$100,000 $ 60,000
187,500
62,500
80,000
80,000
$367,500
$202,500
Return
to show
7 -38
Comparison
Comparison of
of Support
Support Department
Department Cost
Cost
Allocations
Allocations Using
Using the
the Direct,
Direct, Sequential,
Sequential, and
and
Reciprocal
Reciprocal Methods
Methods
Direct costs
Sequential Method
Grinding Assembly
$100,000 $ 60,000
150,000
50,000
105,000
105,000
$355,000
$215,000
Total cost
Return
to show
7 -39
Comparison
Comparison of
of Support
Support Department
Department Cost
Cost
Allocations
Allocations Using
Using the
the Direct,
Direct, Sequential,
Sequential, and
and
Reciprocal
Reciprocal Methods
Methods
Direct costs
Allocated from power
Allocated from maintenance
Total cost
Reciprocal Method
Grinding Assembly
$100,000 $ 60,000
162,857
54,286
96,429
96,429
$359,286
$210,715
Return
to
show
7 -40
7 -41
Product
Product Unit
Unit Cost
Cost
A product requires two machine hours of
grinding per unit and one hour of assembly.
Overhead cost assigned:
2 x $5
1 x $2
Total assigned
$10
2
$12
7 -42
Chapter Seven
The
The End
End
7 -43