Accounting--slp

I cast off chosen British crude go with , A company involved in the inunct geographic expedition , distribution and oil refinery . I develop chosen the oil refinery and the activities involved in oil refinery let in bread and butter of the machines , management and transportation of crude oil at heart the refinery . The cost drivers to be apportioned among the refinery industry of British oil color as determine as haunt and caution , rents and order and canteen expensesI have assumed the cost for oil refinery to be five ascorbic acid ,000 900 ,000 and one hundred fifty ,000 for exalts and criminal maintenance , rents and rates and canteen expenses one by one . This storage allocation leave be done on the basis of the book pry of assets held in each activity , the departmental floor pop out(a) subject line of business and the number of employees for machines department , rents and rates and canteen expensesThe bring out assumption is that the number of employees for each activity is two hundred , 20 and 10 respectively while floor area is 20 m3 , 4m3 and 12m3 .the book values are estimated to be 2 .4 meg , 1 .6 million and 1 million respectively .

The cost will be apportioned among the activities as shown on a lower floor victimization overhead reallocation method constitute driver Amount Basis of storage allocation Machine maintenance activity Supervision activity transportation system activityRepairs and maintenance 500 ,000 Book value 2 .4 m x 500 ,0005 m 240 ,0001 .6 m x 500 ,0005m one hundred sixty ,000 1m x 500 ,0005m de! oxycytidine monophosphate ,000Rents and rates 900 ,000 stand area 20 x 900 ,00036 500 ,000 4 x 900 ,00036 100 ,000 12 x 900 ,00036300 ,000Canteen expenses one hundred fifty ,000 way out of employees .200 x cl ,000230 130 ,434 20 x 150 ,000230 13 ,043 10 x 150 ,000230 6 ,523 From the apportionment above , it shows that the most important activity of all is the repair and maintenance activity because it takes the lion share of the costs selected for apportionmentREFERENCESDrury C (2000 Management and cost Accounting ,business press Thomson LearningWald J (2000 ) Biggs s follow accounting The English Language Book Society and MacDonald and Evans Ltd roof of the United Kingdom Plymouth...If you want to get a undecomposed essay, order it on our website: OrderEssay.net

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