Question
Q 4: A furniture assembling company has two production departments i.e. assembling department and finishing department. It also has two service departments i.e. General cost
Q 4: A furniture assembling company has two production departments i.e. assembling department and finishing department. It also has two service departments i.e. General cost pool and maintenance. Both service departments serve the two production departments as well as to each other. Primary Overhead of assembling department and finishing department was Rs. 80000 and Rs. 120000 respectively. The relationship between the four departments is given below. Service Departments Percentage of services consumed by departments Service departments costs to be distributed Producing Service Assembling Finishing General cost pool Maintenance General cost pool Maintenance 35% 45% 40% 35% ----- 20% 25% ----- Rs. 30000 Rs. 26400 Required: Calculate total factory overhead of production departments by preparing factory overhead distribution sheet using: 1: Repeated distribution method 2: Algebraic distribution method
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started