Yy

ILLUSTRATION 4 Sanz Ltd., is a manufacturing company having three production departments, 'A', 'B' and 'C' and two service departments 'X' and 'Y. The following is the budget for December 2020: A 1,00,000 5,00,000 B 2,00,000 2,00,000 C. 4,00,000 8,00,000 2,00,000 1,00,000 Y 1,00,000 2,00,000 Total Direct material Direct wages Factory rent 4,00,000 Power 2,50,000 Depreciation 1,00,000 Other overheads 9,00,000 Additional information: Area (Sq. ft.) Capital value of assets Machine hours Horse power of machines 500 20 250 40 500 20 250 10 500 10 1,000 50 2,000 40 4,000 20 1,000 15 1,000 25 A technical assessment of the apportionment of expenses of service departments is as under: B 10 35 5 A B C X Y Service Dept. 'X' (%) 45 15 Service Dept. "Y" (%) 60 Required: () PREPARE a statement showing distribution of overheads to various departments