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Zorro Limited are a manufacturing company. The following information relates to a manufacturing business, which has two production departments and two support/service departments Corporate
Zorro Limited are a manufacturing company. The following information relates to a manufacturing business, which has two production departments and two support/service departments Corporate Management Total Machining Finishing Services Services Allocated overheads 397,500 112,500 180,000 37,500 67,500 General overheads Machine running costs 240,075 Machine depreciation 133,950 Premises costs 714,000 Indirect staff costs 120,000 The following information is also available: Production Depts Service Depts Corporate Management TOTAL Machining Finishing Services Services Machine Hours 82,500 75,000 7,500 Machine Value () 3,525,000 3,150,000 375,000 Floor Area (Sq. Mtrs.) Number of staff 10,500 60 7,500 40 1,500 10 750 750 5 5 Labour hours 157,500 56,250 67,500 22,500 11,250
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