Problem-6

The Enfield India Ltd. is divided into four departments: A, B and C are production department and D is a service department. The actual costs for October, 2013 are as follows:

Tk.

Rent 1,000

Repairs to plant 600

Depreciation of plant 450

Light 100

Supervision 1,500

Fire insurance (stock) 500

Power 900

Employers State Insurance contribution 150

The following information is available in respect of the four departments:

ABCDArea (sq.m.)1,5001,100900500No. of employees2015105Direct wages (Tk.)6,0004,0003,0002,000Value of plant (Tk.)24,00018,00012,0006,000Value of stock (Tk.)15,0009,0006,000 -

Apportion the costs to the various departments by preparing overhead distribution summary sheet.