Question

D Illustration 5.4. Calculate the overheads applicable to production department A and B. There are als two service departments X and Y. X renders service worth Rs. 12,000 to Y and balance to A and B as 3:29 renders service to A and B as 9 : 1. A B с Floor space (sq. feet) 5,000 4,000 1,000 2.000 Assets ( Rs. in lacs) 10 5 3 H.P. of machines 1.000 500 400 Number of workers 100 50 50 Light points 50 30 20 Expenses are: Rs. Depreciation 1.90.000 Rent, rates, etc. 36.000 Insurance 15.200 Power 20.000 Canteen expenses 10.800 Electricity 4.800 (BCom Madini 1 100 25 20 Solution

Answer 1

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1 2 3 A B 4 Y 30000 3000 10000 5 6 Apportionment basis Assets Floor area Assets H.P of machine NO. of wrkers Light points 100000 15000 8000 10000 Ratio 10:5:3:1 5:4:1:2 10:5:3:1 10:5:4:1 4:2:2:1 5:3:2:2 2400 Overheads Depreciation Rent rates etc insurance power canteen exp electricity total Distribution of overhead of X Distribution of overheads of y Tota 7 8 9 4000 2400 х 50000 12000 4000 5000 2400 1200 74600 8160 3180 11340 800 6000 800 1000 1200 800 19800 12000 -31800 0 4800 2000 139800 12240 28620 40860 10 42600 11 12 -42600 0 13 14 15 16 17 18 19