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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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