Tamil Nadu Co. Ltd. is a manufacturing company having three production departments, A, B and C, and two service departments X and Y. The following is the budget for December 1985:
|
Total |
A |
B |
C |
X |
Y |
|
|
Direct material(Rs) |
1,000 |
2,000 |
4,000 |
2,000 |
1,000 |
|
|
Direct wages (Rs) |
5,000 |
2,000 |
8,000 |
1,000 |
2,000 |
|
|
Factory rent (Rs) |
4,000 |
|||||
|
Power |
2,500 |
|||||
|
Depredation (RS) |
1,000 |
|||||
|
Other overheads |
9,000 |
|||||
|
Additional information: |
||||||
|
Area (square feet) |
500 |
250 |
500 |
250 |
SOO |
|
|
Capital value of assets |
20 |
40 |
20 |
10 |
10 |
|
|
Machine hours |
1,000 |
2,000 |
4000 |
1,000 |
1,000 |
|
|
HP of machine |
50 |
40 |
20 |
15 |
25 |
A technical assessment for the apportionment of expenses of service departments is as follows:
|
Service department X |
45% |
15% |
30% |
10% |
||
|
Service department Y |
60% |
35% |
5% |
You are required to prepare the following:
|
(a) Statement showing distribution of overheads to various departments. |