1. A Factory manufactures soaps. It is divided in following departments: a production department, a finishing department and an administrative department, mainly concentrated on HR tasks. To allocate indirect costs, the company used a traditional method. The accountant has the following data:

Overhead

	Production	Finishing	Administrative	Total
Rent				380,000
Supervision				120,000
Indirect Labour				180,000

Possible allocation key

	Production	Finishing	Administrative	Total
Floor square meter	8000	4000	500	12,500
Number of employees	50	25	5	80
HR hours	150	50		200

What is the amount of supervision overhead costs allocated to the Finishing?

1. 75,000
2. 37,500
3. 1,500
4. 6,000,000

2. What is the amount of rent overhead costs allocated to the Administrative Department
   1. 126,666
   2. 15,200
   3. 1,500
   4. 121,600

3. What is the total amount of overhead allocated to the Finishing department?
   1. 430,700
   2. 456,162 .5
   3. 223,873.5
   4. 215,350

4. What is the total amount of overhead allocated to the Production Department?
   1. 430,700
   2. 456,16.5
   3. 223,873.5
   4. 215,350