Problems 8-1 Direct Labour Cost 90000 Production Overhead 135000 Overhead Rate = overhead costs/ direct labour

costs 1.5 Means that I incur $1.50 in overhead costs for every $1 in direct labour costs Actual production overhead costs 9550 Overhead asorption base = Total number of labour hours dedicated during overhead period 6600 1.446969697 total Building Furniture Machine $ 40,000 $ 23,800 $ 3,000 $ 800 $ 20,000 $ $ $ $ $ 200 2,210 $ 5,900 $ 1,800 73,910 A Cu ft Sq ft of floor space number of tel. extensions Costs Furniture Inventory Heat Machine Other Insurance Exp A $ $

Heat Dep Insurance Inventories Other Repairs Tel Exp

1,300 $ 400

60 $ $

850 1,900

Cost Centre B C 600,000 200,000 48,000 6,000 9 27 B $ 100.0 $ 32000 20,000 3536 C 600.00 $ 100.0 4000 442

200,000 6,000 9

200.00 4000 442

Building Costs

Central Admin 1575 1050 Arts Ed 30% 630 80 420 3150 4200 6000 0.70 Business Admin 25% 20% 393.75 315 48 252 2625 3270.75 2500 1.31 72 378 2100 2793 1500 1.86

% of space Cost Allocation Number of people Cost Allocation Overhead cost Total Overhead Number of Students Overhead cost per student

1050

90 525

200 employees without other divisions