ASSIGNMENT ON

ADVANCED COST AND MANAGEMENT ACCOUNTING

ASSIGNMENT NO 2

SUBMITTED BY:
MUHAMMAD ATEEF MUZAMMIL
REGISTRATION NO:
M1F18ASOC0026
SEMESTER:
IV
SUBMITTED TO:
PROF. MUZAMMIL AHMED

UNIVERSITY OF CENTRAL PUNJAB

MULTAN CAMPUS
Q 4-18]
Budgeted Indirect Costs
(a) Budgeted Indirect Cost Rate =
Budgeted direct Labour Hours
8300000
=
166000
= 50 per direct labor hour
Actual Indirect Costs
Actual Indirect Cost Rate =
Actual direct Labour Hours
6520000
=
163000
= 40 per direct labor hour
(b)

Normal Costing Laguna Model Mission Model

Construction Period Feb – June 2017 May – Oct 2017
Direct Material Costs 106760 127550
Direct Labor Costs 36950 41320
Direct Labor Hours 960 1050
Assembly Support Cost 48000 (50 × 960) 52500 (50 × 1050)
Total Job Costs 191710 221370

Actual Costing Laguna Model Mission Model

Construction Period Feb – June 2017 May – Oct 2017
Direct Material Costs 106760 127550
Direct Labor Costs 36950 41320
Direct Labor Hours 960 1050
Assembly Support Cost 38400 (40 × 960) 42000 (40 × 1050)
Total Job Costs 182110 210870
Q 4-19]
(i) Budgeted Manufacturing Overhead Rate =
Budgeted Manufacturing Overhead Costs
Budgeted Machine Hours

4200000
=
175000

= 24