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# Apportion the overheads amongst the different Department - PowerPoint PPT Presentation

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

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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 ----

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

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

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

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

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

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