Illustration 7, Practical Question 4 to 6 | Overheads | Costing Ch. 4 | Sep 25/ Jan 26/ May 26

Описание: This video covers Illustrations 7 and Practical Question 4 to 6 Chapter 4 - Overheads - Absorption Costing Method.

It is Part 5 of Chapter 4 - Overheads - Absorption Costing Method of Paper 4 - Cost and Management Accounting for CA Inter. It is based on ICAI Study Material (Modules).

It is relevant for CA Inter May-2024 attempt onwards (Sept 25/ Jan 26/ May 26). It is relevant for ICAI New Scheme of Education and Training (New Course of CA Inter). It is helpful in understanding the concept and to remember as well.

Time Stamp
00:00 Introduction
01:25 CA Inter Costing Chapter 4 Illustration 7
20:15 CA Inter Costing Chapter 4 Practical Question 4
32:32 CA Inter Costing Chapter 4 Practical Question 5
47:00 CA Inter Costing Chapter 4 Practical Question 6

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Following questions are included in the video:

Illustration 7 of Overheads (CA Inter Costing Chapter 4)
A machine shop cost centre contains three machines of equal capacities. To operate these three machines nine operators are required i.e. three operators on each machine. Operators are paid ` 20 per hour. The factory works for fourty eight hours in a week which includes 4 hours set up time. The work is jointly done by operators. The operators are paid fully for the fourty eight hours. In additions they are paid a bonus of 10 per cent of productive time. Costs are reported for this company on the basis of thirteen four-weekly period.
The company for the purpose of computing machine hour rate includes the direct wages of the operator and also recoups the factory overheads allocated to the machines. The following details of factory overheads applicable to the cost centre are available:

Practical Question 4 of Overheads (CA Inter Costing Chapter 4):
Gemini Enterprises undertakes three different jobs A, B and C. All of them require the use of a special machine and also the use of a computer. The computer is hired and the hire charges work out to ` 4,20,000 per annum. The expenses regarding the machine are estimated as follows:

Practical Question 5 of Overheads (CA Inter Costing Chapter 4):
A machine shop has 8 identical Drilling machines manned by 6 operators. The machine cannot be worked without an operator wholly engaged on it. The original cost of all these machines works out to ` 8 lakhs. These particulars are furnished for a 6 months period:

Practical Question 6 of Overheads (CA Inter Costing chapter 4):
Job No. 198 was commenced on October 10, 2022 and completed on November 1, 2022. Materials used were ` 6,000 and labour charged directly to the job was ` 4,000. Other information is as follows:
Machine No. 215 used for 40 hours, the machine hour rate being ` 35.
Machine No. 160 used for 30 hours, the machine hour rate being ` 40. Six welders worked on the job for five days of 8 hours each: the Direct labour hour per welder is ` 20.
General expenses related to production not included for calculating either the machine hour or direct labour hour rate totaled `20,000, total direct wages for the period being `2,00,000. COMPUTE the works costs for job No. 198.

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