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Ellard limited manufactures and sell box files. Ellard ltd has five (5) departments, two production and three service departments. The books of Ellard ltd shows

Ellard limited manufactures and sell box files. Ellard ltd has five (5) departments, two production and three service departments. The books of Ellard ltd shows the following total overheads for the five departments after apportionment were as follow:

BWP

Production departments

Production Department X

41,580

Production Department Y

56,890

Service Departments

Stores Departments

15,902

Maintenance Departments

7,486

Canteen departments

23,540

The following additional information has also been provided:

Production Department X

Production Department Y

Stores Departments

Maintenance Departments

Canteen departments

Number of employees

30

40

20

10

20

Hours of maintenance

350

150

300

200

0

Area Occupied

450

175

90

50

25

Machinery value (BWP'000)

250

165

90

100

0

Number of requestions

480

420

Machine hours

7,500

1,100

Direct labour hours

4,600

5,900

Required:

Using the above information, you are re-apportioning of the fixed overheads from service department to both service and production departments (where applicable), using the most appropriate basis. (Use the stepdown method)

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