ABC LLC is a jobbing engineering concern which has three production departments (forming, machines and assembly) and two service departments (maintenance and general).

The following analysis of overhead costs has been made for the year just ended.

$

Rent and rates 8,000

Power 750

Light, heat 5,000

Repairs, maintenance:

• Forming 800
• Machines 1,800
• Assembly 300
• Maintenance 200
• General 100

Total Repairs, maintenance 3,200

Departmental expenses:

• Forming 1,500
• Machines 2,300
• Assembly 1,100
• Maintenance 900
• General 1,500

Total Departmental expenses 7,300

Depreciation:

• Plant 10,000
• Fixtures and fittings 250

Insurance:

• Plant 2,000
• Buildings 500

Indirect labour:

• Forming 3,000
• Machines 5,000
• Assembly 1,500
• Maintenance 4,000
• General 2,000

Total overhead costs 52,500

Other available data are as follows.

	Floor area. Sq.ft.	Plant value $	Fixtures and fittings. $	Effective horse power	Direct cost for the year, $	Labor hours worked	Machine hours worked
Forming	2,000	25,000	1,000	40	20,500	14,400	12,000
Machines	4,000	60,000	500	90	30,300	20,500	21,600
Assembly	3,000	7,500	2,000	15	24,200	20,200	2,000
Maintenance	500	7,500	1,000	5	-	-	-
General	500	-	500	-	-	-	-
Total	10,000	100,000	5,000	150	75,000	55,100	35,600

Service department costs are apportioned as follows.

Maintenance General

% %

Forming 20 20

Machines 50 60

Assembly 20 10

General 10

Maintenance 10

Required

1. Using the data provided prepare an analysis showing the distribution of overhead costs to departments.
2. Reapportion costs of service departments to production departments using the reciprocal method.