Makemore has three departments: Departments A and B are production and Department C is a service support department. It apportions its overheads as follows (see brackets):

You have the following information:

(a) Department A 1,000 employees, B 2,000 employees, C 500 employees.

(b) Department A 10,000 sq.feet, B 6,000 sq.feet, and C 4,000 sq.feet.

(c) Department A machinery costs £30,000, B machinery costs £15,000.

(d) Repairs are £2,800, £1,100 and £100, respectively, for departments A, B and C.

(e) Department C’s facilities will be reallocated 60% for A and 40% for B.

(f) 

Transcribed Image Text:

Supervisors' salaries Computer advisory Rent and business rates Depreciation on machinery Repairs (number of employees) 25,000 (number of employees) 18,000 (floor area) 20,000 (cost) 21,000 (actual spend) 4,000 84,000