Major Assignment PSB ACFI2003 2016 - Major Assignment ACFI...

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Major AssignmentACFI 2003Due date: 28 June, at 5pmSubmit via Turnitin provided at the BlackBoard site1)Overhead allocationJackson industries uses job order costing.It has two (2) production departments,Fabrication and Assembly.You are provided with the budgeted data for 2017.DepartmentsFabricationAssemblyTotal budgeted overhead cost$600,000$300,000Total budgeted direct labourhours40,00050,000Mr.Jackson has asked you to explain to him how the overhead allocated to jobswould be different between using a plant-wide approach as compared to usingdepartmental overhead rates.He provides data from a recently completed job in2016.All direct labour was paid $10 per DLH.Job 2785Material cost$22,000Direct labour cost:Fabrication$12,000Assembly$ 7,400Required:1.1) Calculate the predetermined plant wide rate and apply it to Job 2785.(2.25 marks)1.2) Calculate departmental overhead rates and apply rates to Job 2785.(3.25 marks)1.3) Evaluate the 2 rates you calculated in 1.1 and 1.2.You must fully explain theimpact of these rates from the perspectives of how the rates were constructed, andhow the overhead resources were consumed.Recommend the rate that Jackson should employ.(4.5 marks)

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Salary, Chia Leung

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