Question

6. The following is a control report prepares by a cost accountant for Department X in factory overheads directly assigned to department X is as under: Rs. Rs. Indirect Materials 1,000 (based on actual requisition) Indirect Labour (Job Tickets) 900 Overtime Charges 100 Depreciation on equipment 500 2,500 Allocated Factory overhead 1,300 (38% of factory space) 1,200 Allocated overhead of repair shop (62% repairs in repair shop done for Department X) Allocaled Office & Administration Overhead (On agree basis) 5,000
Total Department Expenses 13,000
Revise the report treating Department X and Responsibility centre.​

Answer 1

Answer:

Depreciation on Equipment 500

Total Department Expenses 13,000

Explanation:

From the above question,

They have given :

The following is a control report prepares by a cost accountant for Department X in factory overheads directly assigned to department X is as under. Indirect Materials 1,000 (based on actual requisition) Indirect Labour (Job Tickets) 900 Overtime Charges.

A Control Report for Department X, a Responsibility Centre in Factory Overheads Directly Assigned to Department X

Direct Materials 1,000 (based on actual requisition) Direct Labour (Job Tickets) 900 Overtime Charges 100

Indirect Materials 500 Allocated Factory Overhead 1,300 (38% of factory space) 1,200 Allocated Overhead of Repair Shop (62% of repairs in repair shop done for Department X) Allocated Office & Administration Overhead (on agreed basis) 5,000

Depreciation on Equipment 500

Total Department Expenses 13,000

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