Q3. EA is an engineering company which has three production departments (forming, machines and assembly) and...

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Q3. EA is an engineering company which has three production departments (forming, machines and assembly) and two service departments (maintenance and general). The following analysis of overhead costs has been made for the year just ended. Rent and rates Power Light, heat 8,000 750 5,000 Repairs, maintenance: Forming 800 Machines Assembly 1,800 300 Maintenance 200 General 100 3,200 Departmental expenses: Forming 1,500 Machines 2.300 Assembly Maintenance 1,100 900 General Depreciation: Plant 1,500 7,300 10,000 Fixtures and fittings Insurance: Plant Buildings 250 2,000 500 Indirect labor Forming Machines 3,000 5,000 Assembly Maintenance General 1,500 4,000 2,000 15,500 $2.500 Other available data are as follows. Floor area Plant value Fixtures & Effective Direct cost Labor Machine Sq.ft S fittings S horse power for years hours hours Forming 2,000 25,000 1,000 40 20,500 14,400 12,000 Machines 4,000 60,000 500 90 30,300 20,500 21,600 Assembly 3,000 7,500 2,000 15 24.200 20,200 2,000 Maintenance 500 7,500 1,000 5 - General 500 500 - 10,000 100,000 5,000 150 75,000 55.100 35,600 Service department costs are apportioned as follows Forming Machines Assembly General Maintenance Required Maintenance General % 20 20 50 60 20 10 10 10 100 100 Using the data provided prepare an analysis showing the distribution of overhead costs to departments Reapportion service cost center costs using the reciprocal method. (Total marks-6) Q3. EA is an engineering company which has three production departments (forming, machines and assembly) and two service departments (maintenance and general). The following analysis of overhead costs has been made for the year just ended. Rent and rates Power Light, heat 8,000 750 5,000 Repairs, maintenance: Forming 800 Machines Assembly 1,800 300 Maintenance 200 General 100 3,200 Departmental expenses: Forming 1,500 Machines 2.300 Assembly Maintenance 1,100 900 General Depreciation: Plant 1,500 7,300 10,000 Fixtures and fittings Insurance: Plant Buildings 250 2,000 500 Indirect labor Forming Machines 3,000 5,000 Assembly Maintenance General 1,500 4,000 2,000 15,500 $2.500 Other available data are as follows. Floor area Plant value Fixtures & Effective Direct cost Labor Machine Sq.ft S fittings S horse power for years hours hours Forming 2,000 25,000 1,000 40 20,500 14,400 12,000 Machines 4,000 60,000 500 90 30,300 20,500 21,600 Assembly 3,000 7,500 2,000 15 24.200 20,200 2,000 Maintenance 500 7,500 1,000 5 - General 500 500 - 10,000 100,000 5,000 150 75,000 55.100 35,600 Service department costs are apportioned as follows Forming Machines Assembly General Maintenance Required Maintenance General % 20 20 50 60 20 10 10 10 100 100 Using the data provided prepare an analysis showing the distribution of overhead costs to departments Reapportion service cost center costs using the reciprocal method. (Total marks-6)