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A company has five departments . P, N, R, S are producing departments and T is a service department. The actual costs for a period
A company has five departments . P, N, R, S are producing departments and T is a service department. The actual costs for a period are as follows: $ $ 2,000 Insurance 1,500 2,500 Lighting 1,800 Depreciation 1,200 Employer's liability insurance 600 Supervision 4,000 The following data are available in respect of the five departments: Repairs Rent Deptt P Deptt N Deptt R Deptt s Deptt T 20 Area (sq. ft) 140 120 110 90 No. of workers 25 10 10 $10,000 8,000 5,000 5,000 Value of plant $20,000 18,000 16,000 10,000 Value of stock $15,000 10,000 5,000 2,000 Apportion the costs to various departments on equitable bases. 40 5 2,000 6,000 Total wages
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