Question
PL Ltd. has three production departments P1, P2 and P3 and two service departments S and S2. The following data are extracted from the
PL Ltd. has three production departments P1, P2 and P3 and two service departments S and S2. The following data are extracted from the records of the company for the month of October, 2020: Rent and rates General lighting Indirect Wages Power Depreciation on machinery Insurance of machinery Other Information: (*) 12,50,000 1,50,000 3,75,000 5,00,000 10,00,000 4,00,000 P1 P2 P3 $1 S2 Direct wages (*) 7,50,000 5,00,000 7,50,000 3,75,000 1,25,000 Horse Power of 60 30 50 10 - Machines used Cost of machinery (*) 60,00,000 80,00,000 1,00,00,000 Floor space (Sq. ft) Number of light 2,000 10 2,500 3,000 15 20 5,00,000 5,00,000 2,000 500 10 5 points Production hours 6,225 4,050 4,100 - - worked Expenses of the service departments S1 and S2 are reapportioned as below: S1 S2 P1 P2 P3 20% 30% 40% S1 S2 10% 40% 20% 30% 10% -
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