A company has four departments. The actual costs for a period are given here. Apportion the costs to various departments using the most equitable method.
|
Rs |
|
|---|---|
|
Rent |
2,000 |
|
Repairs |
1,200 |
|
Depreciation |
900 |
|
Light |
200 |
|
Supervision |
3,000 |
|
Employer’s liability insurance |
300 |
|
Insurance |
1,000 |
|
Power |
1,800 |
The following data are also available for four departments:
|
Data |
|
B |
C |
D |
|
|
Area (squre feet) |
150 |
110 |
90 |
50 |
|
|
Number of workers |
24 |
16 |
12 |
8 |
|
|
Total wages(Rs) |
8000 |
6000 |
4000 |
2000 |
|
|
Value of plant(Rs) |
24000 |
18000 |
12000 |
6000 |
|
|
Value of stock(Rs) |
15000 |
9000 |
6000 |