FACTORY OVERHEAD FACTORY BURDEN, PRODUCTION OVERHEAD, MANUFACTURING EXPENSE, MANUFACTURING OVERHEAD, FACTORY EXPENSE & INDIRECT MANUFACTURING /PRODUCTION COST
Factory Overhead is generally defined as indirect materials, indirect labor, and all other factory costs that cannot be conveniently identified with or charged directly to specific jobs, lots, products, or final cost objectives.
Unsur-unsur BOP : 1. 2. 3. 4.
bahan tak langsung upah tak langsung reparasi dan pemeliharaan beban yang timbul sebagai akibat penilaian terhadap aktiva tetap 5. beban yang timbul sebagai akibat berlalunya waktu 6. BOP lainnya yang secara langsung memerlukan pengeluaran tunai
Klasifikasi BOP: 1. bila dikaitkan dengan volume produksi, maka BOP dapat dibagi ke dalam :BOP variabel, BOP tetap dan BOP semivariabel. 2. bila dikaitkan dengan departemen yang ada, maka BOP dibagi ke dalam: BOP langsung departemen/direct dept overhead dan BOP tak langsung departemen/indirect dept overhead.
Alasan pembebanan BOP dengan tarif yang ditentukan dimuka (predetermined overhead rate): 1. bila BOP dibebankan dengan biaya sesungguhnya, maka pembebanan BOP tetap per satuan ke produk dapat berfluktuasi. 2. ada unsur BOP yang frekuensi terjadinya tidak merata, sehingga jika pembebanan dengan biaya sesungguhnya, maka BOP per satuan akan berfluktuasi dari waktu ke waktu 3. pada perusahaan yang menerapkan metode harga pokok pesanan, harga pokok dihitung bila pesanan selesai diproses, tetapi ada unsur BOP yang besarnya belum dapat diketahui pada saat pesanan selesai diproses
Factors Considered in Selecting Overhead Rates: 1. 2. 3. 4. 5.
Base to be Used Activity Level Selection Including or Excluding Fixed Overhead Use of a Single Rate or Several Rates Use of Separate Rates for Service Activities
Base to be used The factor measured in the denominator of an overhead rate is called the overhead rate base, the overhead allocation base, or simply the base. a. Physical output b. Direct materials c. Direct labor d. Direct labor hours e. Machine hours f. Transaction or activities
Physical output/units of production Base Factory overhead rate: Estimated factory overhead Estimated units of production
Direct materials Base Factory overhead rate: Estimated factory overhead x 100% Estimated direct materials
Direct labor Base Factory overhead rate: Estimated factory overhead x 100% Estimated direct labor
Direct labor hour Base Factory overhead rate: Estimated factory overhead Estimated direct labor hours
Machine hour Base Factory overhead rate: Estimated factory overhead Estimated machine hours
• Ordinarily the Base should be closely related to functions represented by the overhead cost being applied. • Based to be Used Physical Output, Direct Materials Cost, Direct Labor Cost, Direct Labor Hours, Machine Hours
Activity Level Selection • • • •
Theoretical Capacity Practical Capacity Expected Actual Capacity Normal Capacity
Accounting for Overhead • Actual costs will almost never equal budgeted costs. Accordingly, an imbalance situation exists between the two overhead accounts – If Overhead Control > Overhead Allocated, this is called Underallocated Overhead – If Overhead Control < Overhead Allocated, this is called Overallocated Overhead
Over/Under applied FOH • Actual FOH is the amount of indirect production cost incurred. • Applied FOH is the amount of indirect production cost allocated to output. FOH control Various credits Work In Process Applied FOH Applied FOH FOH control Income Summary/Cost of Goods Sold FOH control FOH control Income Summary/Cost of Goods Sold
• This difference will be eliminated in the endof-period adjusting entry process, using one of three possible methods • The choice of method should be based on such issues as materiality, consistency, and industry practice
Methods for Adjusting the Over/Underapplied Situations • Adjusted Allocation Rate Approach – all allocations are recalculated with the actual, exact allocation rate • Proration Approach – the difference is allocated between Cost of Goods Sold, Workin-Process, and Finished Goods based on their relative sizes • Write-Off Approach – the difference is simply written off to Cost of Goods Sold
