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Prod 1 Prod 2 Stores dept Maintenance dept Overhead costs $ 24,000 16,000 10,000 8,000 Cost of material requisitions 40,000 35,000 - 15,000 Mnance hours
| Prod 1 | Prod 2 | Stores dept | Maintenance dept |
|
Overhead costs $ | 24,000 | 16,000 | 10,000 | 8,000 |
|
Cost of material requisitions | 40,000 | 35,000 | - | 15,000 |
|
Mnance hours needed (hrs) | 8,000 | 4,500 | 1,500 |
|
|
Required:
1) Ascertain the total overhead costs of the production departments
2) Compare the overall cost of the production departments using the repeated distribution method and the traditional overhead absorption method.
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