QUESTION 1

Sydney Co is preparing its production overhead budgets. Cost Centre Expenses and related information have been budgeted as follows:

Required:

Calculate the overheads to be apportioned to the four cost centres.

Stores 4,000 10 20 Machining 24,000 1,400 400 16,000 32,600 32,000 310 Assembly 36,000 200 800 32,000 67,200 4,000 1,112 Finishing 16,000 60 200 4,000 7,200 200 100 $ 15,000 1,400 $ 6,000 Area occupied (square metres) Plant and equipment at cost (000) Number of employees Direct labour hours Direct wages () Machine hours Number of requisitions on stores Allocated costs Indirect wages Indirect materials Maintenance Power Other costs (in total) Rent Business rates Insurance on building Lighting and heating Depreciation on plant and equipment Wage-related costs Factory administration and personnel Insurance on plant and equipment Cleaning of factory premises 9,000 394 1,400 1,600 4,000 600 100 200 400 2,000 600 200 400 16,700 28,200 7,100 1,670 800 57,670