Question

A company has 3 Production Departments A, B and C and 2 Service Departments X and Y. The following information is available regarding various expenses: Power Rs. 2,400 Rent Rs. 4,200 Canteen Rs. 3,000 Insurance Rs. 2,200 Depreciation Rs. 20,000 Personnel Department Rs. 4,000 Maintenance of Assets Rs. 2,400 The following additional information is also given: Items Production Department Service Department A B C X Y Area (sq. metres) 400 400 300 200 100 Kilowatt hours 2,000 2,200 800 750 250 Number of workers 90 120 30 40 20 Capital value of assets (in ‘000 of Rs.) 50 60 40 30 20 Direct material cost (Rs.) 5,000 3,000 2,000 1,000 1,000 The expenses of department X and Y will be apportioned among production departments in the ratio of 5:3:2 and 20%, 30% and 50% respectively. Prepare Overheads Distribution Summary.

Answer 1

B and C and 2 Service Departments X and Y. The following information is available regarding various expenses: Power Rs. 2,400 Rent Rs. 4,200