A company has three production departments P, Q and R and two service departments M and C . Following details in respect of indirect expenses

Question

29 users unlocked this solution today!

A company has three production departments P, Q and R and two service departments M and C . Following details in respect of indirect expenses incurred are furnished for a month :

Indirect labour Rs. 9000

General lighting Rs. 1200

Rent and taxes Rs 12000

Power Rs 6000

Depriciation of machinery Rs 24000

Sundry expenses Rs 7800

The following further details are

Basis of apportionment P Q R M C

Floor space 150 200 250 100 50

Light points 20 30 40 20 10

Direct wages 30 20 40 4 6

Horse power 60 30 50 10 -

Machine value 60 50 40 10 -

Working hours 2940 2060 2150 - -

The expenses of service departments M and C are allocated to P Q and R in the ratio 2:3:4 . Calcute the overhead rate per production hours of eac production department .

Kindly solve this question ..