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A company manufactures a product in three production departments and needs to apportion budgeted monthly fixed costs between those departments. Budgeted costs are: Rent 7,500

A company manufactures a product in three production departments and needs to apportion budgeted monthly fixed costs between those departments. Budgeted costs are:

Rent 7,500
Machinery insurance 2,500
Machinery depreciation 25,000
Supervisory salary 17,500
52,500

The following additional information is available:

Department X Department Y Department Z
Area (square metres) 7,600 7,000 1,400
Value of machinery () 420,000 220,000 160,000
Number of employees 17 8 10

What is the total budgeted monthly fixed overhead cost for Department Z (to the nearest )?

11,156
17,500
4,684
26,500

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