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Watson group has two production departments (Assembly and Finishing) and one service department (First Aid). The following analysis of overhead costs has been made for
Watson group has two production departments (Assembly and Finishing) and one service department (First Aid). The following analysis of overhead costs has been made for the year just ended. First Aid Square meters NBV Equipment Number of Employees Assembly Department 50,000 m2 $200,000 55 Finishing Department 25,000 m2 $100,000 30 5,000 m2 $50,000 15 Production Overhead Costs for the Period Factory Rent Factory Heat Assembly Department (Supervisor) Finishing Department (Supervisor) Depreciation of Equipment Factory First Aid Expenses Welfare Costs of Factory Employees Total $25,000 $15,000 $10,000 $8,000 $3,000 $15,000 $9,000 $85,000 Required: What is the total budgeted fixed overhead cost during this period for Assembly department
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