Muhmmed Ans 1&3
Muhmmed Ans 1&3
Muhmmed Ans 1&3
Daily Working Hrs Labor cost/hr No. Of wrkrs oil analysed/hr Upfront Cost
10 -54 1 24 Labor/yr
Maint/yr
Part B: Manual
Daily Working Hrs Labor cost/hr No. Of wrkrs oil analysed/hr Upfront Cost
10 -36 3 18 Labor/yr
Maint/yr
1 2 3 4 5 6 7
-89000
-162000 -162000 -162000 -162000 -162000 -162000 -162000
-10500 -10500 -10500 -10500 -10500 -10500 -10500
1 2 3 4 5
-24000
-324000 -324000 -324000 -324000 -324000
-1500 -1500 -1500 -1500 -1500
-1785000
-1651500
Total Oil analysed
720000
A B C Spares
D Mfg L 6746 4460 3118 2222
DM 14000 5620 6000 2000
EL 958 576 384 192
Manuf Ovr 8499.012 5618.973 3928.242 2799.408
MH 1483.187 595.3937 635.6516 211.8839
Eng Ovrhd 1360.393 817.9399 545.2933 272.6466
Total 33046.59 17688.31 14611.19 7697.938
G&A 3533.787 1891.472 1562.425 823.1673
A B C Spares
D Mfg L 6746 4460 3118 2222
DM 14000 5620 6000 2000
EL 958 576 384 192
Manuf Ovr 8499.012 5618.973 3928.242 2799.408
MH 1199.51 793.0349 554.4132 395.095
Eng Ovrhd 3142.884 2077.863 1452.64 1035.204
G&A 3541.956 2341.702 1637.091 1166.651
15063.12 95918
9458.321 95918
5604.803
o allocate every indirect cost, it allocates less indirect cost to R&D and more indirect cost to rest of the produ
Driver for allocation
Lbr dollar-mfg
Direct Mat
Lbr dollar-engg
Total input cost
Lbr dollar-mfg
Lbr dollar-mfg
Lbr dollar-mfg
Lbr dollar-mfg
st to rest of the products. This is because, R&D involves very less of manufacturing labor. Thus, the results o
or. Thus, the results of indirect cost distribution are a bit skewed. Using this parameter of allocation does not
of allocation does not represent the true indirect cost utilization in every product. First method is far more su
method is far more superior in allocating the indirect costs correctly.