Question
Q1 Allocate and apportion the following overhead costs to the production and service departments. Overhead costs Heat and light 40,000 Factory supervision 60,000 Indirect labour
Q1
Allocate and apportion the following overhead costs to the production and service departments.
Overhead costs
Heat and light
40,000
Factory supervision
60,000
Indirect labour
80,000
Indirect materials
20,000
Depreciation on machinery
10% of value of machines
Administration costs
30,000
Rent and rates
16,000
Departmental information
Production dept.
Service dept.
A
B
C
Maintenance
Canteen
Indirect
labour
17,000
26,080
24,750
7,240
4,930
Indirect
material
8,000
6,000
6,000
Area (sq m)
7,000
10,000
6,000
4,000
5,000
Number of
employees
12
17
13
6
12
Value of
machinery
50,000
80,000
40,000
Prepare an overhead analysis sheet. Reapportion the canteen costs then the maintenance of machinery department costs on the most suitable basis.
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Cornerstones of Managerial Accounting
Authors: Maryanne Mowen, Don Hanson, Dan Heitger, David McConomy, Bradley Witt, Jeffrey Pittman
3rd Canadian edition
176530886, 176721231, 978-0176721237
