Gul Ahmed Textile Mills limited has mainly four producing departments and three servicing departments. The actual factory overhead cost and other related statistical data for the month of April, 2020 is as follows: Departments Total Actual factory overhead expenses Area Steam consumed Number of Requisitions Production Rs Square Yards Pounds Numbers Direct labor hours Production departments: Spinning 945,000 1,200 105,000 350 32,500 Weaving 900,500 1,600 125,000 275 34,500 Dyeing and Printing 730,000 1,350 150,000 230 36,400 Stitching 765,400 800 170,000 285 28,400 Service departments: Maintenance shop 540,500 700 60,000 90 - Boiler shop 575,200 650 -0- 95 - Store Room 390,800 950 -0- 30 - Total 4,847,400 ======= 7,250 ====== 610,000 ======= 1,355 ====== - The order and bases for distribution of service departments factory overhead expenses to other departments are as follows: Maintenance shop: Area in square yards Boiler shop: Steam consumption in pounds Store Room: Number of requisitions Additional information: The Company assigns service departments expenses to other service departments too, however, after a service departments expenses have been allocated, no expenses are assigned back to it. Required i). Schedule showing distribution of service departments factory overhead expenses based on the data given above. Marks: 7 ii).Factory overhead rates per direct labor hour for the above four producing departments. Marks: 1 iii). The CEO of National tiles company limited has been very critical of the present products costing methods whereby factory overhead is charged to the products on over all factory rate basis. You have been appointed by him as a consultant (as you are doing BBA and studying presently cost accounting in Bahria University) to suggest to management that how to calculate factory overhead rates in another way and charge to products so that products costing may be reliable and agreeably.

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Gul Ahmed Textile Mills limited has mainly four producing departments and three servicing departments. The actual factory overhead cost and other related statistical data for the month of April, 2020 is as follows: Total Actual Number of factory Area Steam Requisitions Production Departments overhead consumed expenses RS Square Yards Pounds Numbers Direct labor "hours" 945,000 900,500 730.000 765.400 1,200 1.600 1.350 800 Production departments: Spinning Weaving Dyeing and Printing Stitching Service departments: Maintenance shop Boiler shop Store Room Total 105.000 125.000 150,000 170,000 350 275 230 285 32.500 34,500 36,400 28.400 540.500 575.200 390.800 4,847,400 700 650 950 7,250 60.000 -0- -0- 610,000 90 95 30 1,355 The order and bases for distribution of service departments factory overhead expenses to other departments are as follows: Maintenance shop: Area in square yards Boiler shop: Steam consumption in pounds Store Room: Number of requisitions Additional information: The Company assigns service departments expenses to other service departments too, however, after a service department's expenses have been allocated, no expenses are assigned back to it. Required i). Schedule showing distribution of service departments' factory overhead expenses based on the data given above. ii).Factory overhead rates per direct labor hour for the above four producing departments. ii). The CEO of National tiles company limited has been very critical of the present products costing methods whereby factory overhead is charged to the products on over all factory rate basis. You have been appointed by him as a consultant (as you are doing BBA and studying presently cost accounting in Bahria University) to suggest to management that how to calculate factory overhead rates in another way and charge to products so that products costing may be reliable and agreeably