(2) Composite Machine Hour Rate: This method takes into account not only expenses directly connected with the machine as mentioned above, but also other expenses which are known as stand­ing or fixed charges. If a cost is incurred for two or more divisions or departments then it is to be apportioned to the different departments on the basis of benefit received by them. 5. Store overheads have been apportioned as a percentage of material cost, i.e., Rs19,800/RS 1,98,000 x 100 = 10% . Rental costs are usually apportioned between cost centres on the basis of the floor space taken up by each centre. A cost apportionment base is the basis used by a business to apportion its overhead costs. Note: There are certain expenses which cannot be apportioned or allocated among the different departments on a suitable basis, the same should be transferred to General Profit and Loss Account (e.g., Interest on Capital, Debenture Interest, Loss on sale … 9,300; of this Rs. De très nombreux exemples de phrases traduites contenant "costs may be apportioned" – Dictionnaire français-anglais et moteur de recherche de traductions françaises. The payroll costs for the year were $100,000, and the accounting costs for the year totaled $50,000. For this purpose, the cost object could be production units, machines, groups of machines, individual products or groups of products. In other words, the joint costs are apportioned on the basis of their ability to absorb joint costs. Standard Cost Method: Under this method, the joint cost is apportioned on the basis of standard cost set for the respective … Companies that price all or a large part of their output on a cost-plus basis certainly need to include overheads in their cost of production. The apportionment base is usually a quantity such as the floor area of a department, book value of machinery, number of employees, machine hours used, or kilowatt hours of electricity used. Once a leaseholder has established the apportionment method which should be they can make their own calculations to check that this method has been applied correctly. For example, salary paid to the general manager should be distributed to the production, administration and selling departments as the general manager looks after all the departments. General lighting expenses are to be apportioned on the basis of floor area. This preview shows page 35 - 38 out of 42 pages. Cutting Sanding Assembly Stores Canteen . During the month of May costs for generating power amounted to Rs. Service Department ‘X’ renders service to A, B and Y in the ratio 13:6:1, while Service Department ‘Y’ renders service to A and B in the ratio 31:3. For example: Power expenses. Accounting costs are apportioned on the basis of the number of reports. De très nombreux exemples de phrases traduites contenant "apportioned rate" – Dictionnaire français-anglais et moteur de recherche de traductions françaises. 3. How to use on the basis of in a sentence. Calculate the MHR from the following: Cost of the machine Rs 8,000 Cost of installation Rs 2,000 Scrap value after 10 years Rs 2,000 Rates and rent for a quarter for the shop Rs 300 General … Show how the costs would be apportioned to each department. The payroll costs for the year were $231,000 and the accounting costs for the year totaled $75,500. The states conducted the 2010 elections with districts apportioned according to the 2000 Census. @ Rs.40 per kg. Overheads 10 000 12 000 24 000 3000 6000 . 4. Number of workers or employees : All employees related costs like canteen, supervision, personnel, medical and welfare expenses. The basis for apportionment may be out of date. The reciprocal service to C is ignored as, by now, it is not material. Classification of Overheads is the process of grouping of indirect costs on the basis of common characteristics and clear objectives. 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