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. mkkk The following data were obtained from the books of Brooks Co. Ltd. for the half-year ended 30th September, 1985. Calculate the departmental overhead
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The following data were obtained from the books of Brooks Co. Ltd. for the half-year ended 30th September, 1985. Calculate the departmental overhead rate for each department assuming that overheads are recovered as a percentage on direct wages. Items Production Depts. Service Depts. A B X Y Direct Wages ($) 7,000 6,000 5,000 1,000 1,000 Direct material ($) 3,000 2,500 2,000 1,500 1,000 Employees (N) 200 150 150 50 50 Electricity (KWh) 8,000 6,000 6,000 2,000 3,000 Light Points (Nos.) 10 15 15 5 Asset Value ($) 50,000 30,000 20,000 10,000 10,000 Area occupied (Sq.m.). 800 600 600 200 200 Reapportionment: service department y = in proportion to direct wages, x = ratio of 4:3 : 3 among production departments, A,B,C respectively. The expenses for 6 months were: (a) Stores overhead, $ 400; (b) Motive power, $1,500; (c) Electric light, $ 200; (d) Labour welfare, $3,000; (e) Depreciation, $6,000; (f) Repairs, $1,200;(e) General overheads, $10,000; and (h) Rent and taxes, $ 600Step by Step Solution
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