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Apportion the overheads amongst the different Department

Apportion the overheads amongst the different Department Work Managers Salary 4,000 Power 21,000

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Apportion the overheads amongst the different Department

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  1. Apportion the overheads amongst the different Department Work Managers Salary 4,000 Power 21,000 Contribution to P.F 9,000 Plant Maintenance 4,000 Depreciation 20,000 Canteen Expenses 12,000 Rent 6,000 Additional Information A B C D No. of Employees 16 8 4 4 Area Occupied (Sq Ft.) 2,000 3,000 500 500 Value of Plant 75,000 1,00,000 25,000 ---- Wages 40,000 20,000 10,000 5,000 Horse Power 3 3 1 ----

  2. Overhead Distribution Summary

  3. Apportion the overheads between diff. Departments A renders service worth Rs. 12,000 to B and the balance to X and Y as 3:2. B renders services to X and Y as 9:1 Depreciation 1,90,000 Rent Rates & Taxes 36,000 Insurance 15,200 Power 20,000 Canteen Exp. 10,800 Electricity 4,800

  4. Overhead Distribution Summary

  5. Total departmental overhead as per primary distribution The company decided to charge service department costs on the basis of the following percentages Find out the total overheads of prod. Depts charging service departmental cost to production on repeated distribution method

  6. Total departmental overhead as per primary distribution The company decided to charge service department costs on the basis of the following percentages Find out the total overheads of prod. Depts charging service departmental cost to production depts on the basis of Simultaneous equation method

  7. Let X be the total overheads for Dept. P And Y be the total overheads for Dept. Q X = 1,20,000 + .05 Y Y = 1,00,000 + .15 X Solving the two equations , we get X = 1,25,945 Y = 1,18,900

  8. The expenses of service departments ( D & E) are to be allocated as follows: You are required to distribute the service department expenses to the production departments as per Simultaneous equation method and also as per repeated distribution method. Also calculate the hourly rate of each production department

  9. Let ‘X’ be the total overheads of service department D and ‘Y’ be the total overheads for Service department E X = 15,950 + .20 Y Y = 10,050 + .10 X Solving the two equations: X = 18,326 Y = 11,883

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