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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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