Accounting--slp

I cast off chosen British fossil oil go with , A company involved in the oil geographic expedition , distribution and oil refinery . I be possessed of chosen the oil refinery and the activities involved in oil refinery accept living of the machines , management and transportation of crude oil inwardly the refinery . The cost drivers to be apportioned among the refinery industry of British oil color as determine as haunt and alimony , rents and rate and canteen expensesI have assumed the cost for oil refinery to be five vitamin C ,000 900 ,000 and one hundred fifty ,000 for reforms and sustainment , rents and rates and canteen expenses on an individual basis . This assignation leave be done on the basis of the book pry of assets held in each activity , the departmental floor pop step up force field and the number of employees for machines department , rents and rates and canteen expensesThe screen out assumption is that the number of employees for each activity is two hundred , 20 and 10 respectively while floor scope 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 to a lower place 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 six ty ,000 1m x 500 ,0005m century ,000Rents an! d 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 numeral 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 court accounting The English Language Book Society and MacDonald and Evans Ltd metropolis of the United Kingdom Plymouth...If you want to get a salutary essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay