Question

Classify the following items into various types of overhead, separately showing the

items which are not included in cost.

Rs.

Factory rent and taxes 10,000

Direct expenses 4,000

Managers Salary (To be allocated 70% to factory and rest to office) 14,000

Collection Charges 3,600

Market research expenses 7,500

Heating and air-conditioning - Office 5,500

Heating and air- conditioning - Showroom 12,000

Loss on sale of old Machinery 2.800

Cost of printing price list and Catalogues 3,500

Showroom Rent 3,000

Power 6,700

Interest paid 4,500

Damages payable at law 6,000

Bonus to office staff 8,000

Carriage outwards 2,000

Telephone charges- Factory 3,000

Telephone charges-Office 1,800

Telephone charges-Showroom 4,500

Directors Fees 6,000

Audit Fees 3,500

Indirect Wages 7,800

Internal Transport charges 2,700

Plant repairs 1,200​

Answer 1

Answer:

rates;

1. 10,000
2. 4000
3. 14000
4. 3600
5. 7500
6. 5500
7. 12000
8. 3000
9. 1800
10. 4500
11. 6000
12. 3500
13. 7800
14. 2700
15. 1200