Tham khảo tài liệu 'pearson education of management accounting_4', kinh doanh - tiếp thị, quản trị kinh doanh phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 108 CHAPTER 4 FULL COSTING Activity Taking the same business as in Example on closer analysis we find that of the overheads totalling 20 000 next month 8 000 relates to machines depreciation maintenance rent of the space occupied by the machines and so on and the remaining 12 000 to more general overheads. The other information about the business is exactly as it was before. How much of the total overheads will be charged to each job if the machine-related overheads are to be charged on a machine hour basis and the remaining overheads are charged on a direct labour hour basis Direct labour hour basis Overhead recovery rate 12 000 1 600 per direct labour hour Machine hour basis Overhead recovery rate 8 000 1 000 per machine hour Overheads charged to jobs Job 1 Job 2 Direct labour hour basis X 800 6 000 X 800 6 000 Machine hour basis X 700 5 600 X 300 2 400 Total 11 600 8 400 We can see from this that the expected overheads of 20 000 are charged in total. Segmenting the overheads in this way may well be seen as providing a better basis of charging overheads to jobs. This is quite often found in practice usually by dividing a business into separate areas for costing purposes charging overheads differently from one area to the next according to the nature of the work done in each. Remember that there is no correct basis of charging overheads to jobs so our frequent reference to the direct labour and machine hour bases should not be taken to imply that these are the correct methods. However it should be said that these two methods do have something to commend them and they are popular in practice. As we have already seen a sensible method does need to identify something about each job that can be measured and which distinguishes it from other jobs. There is also a lot to be said for methods that are concerned with time because most overheads are time-related. Dealing with overheads on a cost centre basis In general as we saw in .
