Question #

$1$

$$Allocation of overheads

ABC LLC is a jobbing engineering concern 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

$8$

$,$

$0$

$0$

$0$

Power

$7$

$5$

$0$

Light, heat

$5$

$,$

$0$

$0$

$0$

Repairs, maintenance:

$-$

$$Forming

$8$

$0$

$0$

$-$

$$Machines

$1$

$,$

$8$

$0$

$0$

$-$

$$Assembly

$3$

$0$

$0$

$-$

$$Maintenance

$2$

$0$

$0$

$-$

$$General

$1$

$0$

$0$

Total Repairs, maintenance

$3$

$,$

$2$

$0$

$0$

Departmental expenses:

$-$

$$Forming

$1$

$,$

$5$

$0$

$0$

$-$

$$Machines

$2$

$,$

$3$

$0$

$0$

$-$

$$Assembly

$1$

$,$

$1$

$0$

$0$

$-$

$$Maintenance

$9$

$0$

$0$

$-$

$$General

$1$

$,$

$5$

$0$

$0$

Total Departmental expenses

$7$

$,$

$3$

$0$

$0$

Depreciation:

$-$

$$Plant

$1$

$0$

$,$

$0$

$0$

$0$

$-$

$$Fixtures and fittings

$2$

$5$

$0$

Insurance:

$-$

$$Plant

$2$

$,$

$0$

$0$

$0$

$-$

$$Buildings

$5$

$0$

$0$

Indirect labour:

$-$

$$Forming

$3$

$,$

$0$

$0$

$0$

$-$

$$Machines

$5$

$,$

$0$

$0$

$0$

$-$

$$Assembly

$1$

$,$

$5$

$0$

$0$

$-$

$$Maintenance

$4$

$,$

$0$

$0$

$0$

$-$

$$General

$2$

$,$

$0$

$0$

$0$

Total overhead costs

Other available data are as follows.

$5$

$2$

$,$

$5$

$0$

$0$

Floor

area.

Sq

$.$

ft

$.$

Plant

value $

Fixtures

and

fittings. $

Effective

horse

power

Direct cost

for the

year,

$

Labor

hours

worked

Machine

hours

worked

Forming

$2$

$,$

$0$

$0$

$0$

$2$

$5$

$,$

$0$

$0$

$0$

$1$

$,$

$0$

$0$

$0$

$4$

$0$

$2$

$0$

$,$

$5$

$0$

$0$

$1$

$4$

$,$

$4$

$0$

$0$

$1$

$2$

$,$

$0$

$0$

$0$

Machines

$4$

$,$

$0$

$0$

$0$

$6$

$0$

$,$

$0$

$0$

$0$

$5$

$0$

$0$

$9$

$0$

$3$

$0$

$,$

$3$

$0$

$0$

$2$

$0$

$,$

$5$

$0$

$0$

$2$

$1$

$,$

$6$

$0$

$0$

Assembly

$3$

$,$

$0$

$0$

$0$

$7$

$,$

$5$

$0$

$0$

$2$

$,$

$0$

$0$

$0$

$1$

$5$

$2$

$4$

$,$

$2$

$0$

$0$

$2$

$0$

$,$

$2$

$0$

$0$

$2$

$,$

$0$

$0$

$0$

Maintenance

$5$

$0$

$0$

$7$

$,$

$5$

$0$

$0$

$1$

$,$

$0$

$0$

$0$

$5$

$-$

$-$

$-$

General

$5$

$0$

$0$

$-$

$5$

$0$

$0$

$-$

$-$

$-$

$-$

Total

$1$

$0$

$,$

$0$

$0$

$0$

$1$

$0$

$0$

$,$

$0$

$0$

$0$

$5$

$,$

$0$

$0$

$0$

$1$

$5$

$0$

$7$

$5$

$,$

$0$

$0$

$0$

$5$

$5$

$,$

$1$

$0$

$0$

$3$

$5$

$,$

$6$

$0$

$0$

Service department costs are apportioned as follows.

Maintenance General

$\%$

$\%$

Forming

$2$

$0$

$2$

$0$

Machines

$5$

$0$

$6$

$0$

Assembly

$2$

$0$

$1$

$0$

General

$1$

$0$

$$

Maintenance

$$

$1$

$0$

Required

$1$

$.$

$$Using the data provided prepare an analysis showing the distribution of overhead costs to

departments.

$2$

$.$

$$Reapportion costs of service departments to production departments using the reciprocal

method.

i dont understand other solutions which is present on chegg, thats why i am posting it here. Please give me complete solution.