P.10.4 Modern Machines Limited has three production departments (A, B and C) and two service depart- ments (D and E). From the following figures extracted from the records of the company, calculate the overhead rate per labour-hour of production departments. Total direct labour hours of departments A B and C are 5,000, 5,000 and 2,000 respectively. y45 Indirect materials Indirect wages Depreciation on machinery Depreciation on buildings Rent, rates and taxes Electric power for machinery Electric power for lighting General expenses 31,50,000 1,00,000 2,50,000 50,000 1,00,000 1,50,000 5,000 1,50,000 Total Items B Drect materials () 6,00,000 2,00,000 1,00,000 1,90,000 Direct wages () 4,00,000 1,50,000 1,50,000 40,000 Value of machinery () 25,00,000 6,00.000 10,00,000 4,00,000 Floor area (sq. feet) 50,000 15,000 10,000 10,000 Horse power of machines 150 50 60 30 Number of light points 50 15 10 10 General expenses 1,50,000 50,000 50,000 20,000 The expenses of service departments D and E are to be apportioned as follows: D 60,000 20,000 2,50,000 5,000 E 50.000 40,000 2,50,000 10,000 5 5 10,000 5 10 20.000 B E 40 10 Department D (%) Department E (%) 20 30 30 40 30