Question
(a) WPPSCAN group has five departments P,N,R and S are producing departments while T is a service department. The actual costs for the period are
(a) WPPSCAN group has five departments P,N,R and S are producing departments while T is a service department. The actual costs for the period are as follows.
Repairs 2000 Rent 2500 Depreciation 1200 Supervision 4000 Insurance 1500 Employers liability 600 Light 1800
The following data is also available.
departments P N R S T Area (sq.ft) 140 120 110 90 40 No. of workers 25 20 10 10 5 Total wages 10000 8000 5000 5000 2000 Value of plants 20000 18000 16000 10000 6000 Stock value 15000 10000 5000 2000 -
Required; define the concept of apportionment of costs and apportion the various costs into various departments on equitable basis.(10 marks).
(b) Calculate the payments of a worker under Rowan plan and Halsey plan and make conclusions from the following information.
(i) Hourly rate of wages shs. 50.
(ii) Standard time for producing a dozen of items 3 hours.
(iii) Actual time taken by a worker to produce 20 dozens of items. 48 hours.(5 marks).
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