Questions:
Calculate the overheads allocated to production departments A and B from the following: There are two service departments X and Y. X renders service to A and B in the ratio 3:2 and Y renders service to A and B in the ratio 9:1. Overhead as per primary overhead distribution is A-Rs 49,800; B-Rs 29,600; X-Rs 15,600; Y-Rs 10,800.
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Production departments
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Service departments
|
|
A
|
B
|
C
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X
|
Y
|
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Direct wages (Rs)
|
7,000
|
6,000
|
5,000
|
1,000
|
1,000
|
|
Direct materials (Rs)
|
3,000
|
2,500
|
2,000
|
1,500
|
1,000
|
|
Employees (number)
|
200
|
150
|
150
|
50
|
50
|
|
Electricity (units)
|
8,000
|
6,000
|
6,000
|
2,000
|
3,000
|
|
Light points (number)
|
10
|
15
|
15
|
|
|
|
Asset value (Rs)
|
50,000
|
30,000
|
20,000
|
10,000
|
10,000
|
|
Area occupied (square yards)
|
800
|
600
|
600
|
200
|
200
|
The expenses (in rupees) for the month were as follows:
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Stores overheads (Rs)
|
400
|
|
Motive power (Rs)
|
1,500
|
|
Lighting (Rs)
|
200
|
|
Labour welfare (Rs)
|
3,000
|
|
Depreciation (Rs)
|
6,000
|
|
Repairs and maintenance (Rs)
|
1,200
|
|
General overheads (Rs)
|
1,000
|
|
Rent and rates (Rs)
|
600
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Apportion the expenses of X in the ratio 4:3:3 and those of department Y in the proportion of direct wages to departments A, B and C, respectively.
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Total
|
- 18,400
|
5,190
|
3,520
|
2,850
|
3,650
|
3,190
|
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Department X4:3:3
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- -
|
1,460
|
1,095
|
1,095
|
(-3,650)
|
-
|
|
Department Y76:5
|
- -
|
1,241
|
1,063
|
886
|
-
|
(-3,190)
|
|
18,400
|
7,891
|
5,678
|
4,831
|
|
|