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LS Ltd has two production cost centres (Assembly and Finishing) and two production service cost centres (Maintenance and Canteen). The following are budgeted costs for
LS Ltd has two production cost centres (Assembly and Finishing) and two production service cost centres (Maintenance and Canteen). The following are budgeted costs for the next period: Indirect materials Rent Electricity 20,000 15,000 10,000 Machine depreciation 5,000 Indirect labour 16,520 The following information is available: Assembly Finishing Maintenance Canteen Total Area (sq metres) 1,000 2,000 500 500 4,000 kW hours consumed 2,750 4,500 1,975 775 10,000 Machine value () 45,000 35,000 11,000 9,000 100,000 Staff 18 30 12 2 62 Direct labour hours 3,175 3,800 6,975 Indirect materials budget 7,000 8,000 3,000 2,000 20,000 () Indirect labour budget () 2517 1303 11,200 1,500 16,520 State the amount of indirect labour allocated to the assembly cost centre on the overhead analysis sheet. Answer: x
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