A producing concern Krishna is divided into four departments. A, B and C are production departments and D is a service department. The actual expenses for a period are as follows:
|
Rs |
Rs |
|
Rent |
10,000 |
|
Repairs to plant |
6,000 |
|
Depreciation to plant |
4,500 |
|
Lighting expenses |
1,200 |
|
Supervisory expenses |
15,000 |
|
Fire insurance (on stock) |
5,000 |
|
Power |
9,000 |
The following information is available for the four departments:
|
Departments |
||||
|
Particulars |
A |
|||
|
Area (square feet) |
1,500 |
1,100 |
900 |
500 |
|
HP of plant (horse power) |
20 |
15 |
10 |
5 |
|
Number of employees |
200 |
150 |
100 |
SO |
|
Total wages (Rs) |
60,000 |
40,000 |
30,000 |
20,000 |
|
Value of plant (Rs) |
2,40,000 |
1,80,000 |
1,20,000 |
60,000 |
|
Value of stock (Rs) |
1,50,000 |
90,000 |
60,000 |
|
Apportion the costs to various departments on the most equitable basis.