PH Ltd. is a manufacturing company having three production departments A, B and C and two service departments E and Y. The following is the budget for December 1994:
|
A (Rs) |
B (Rs) |
C (Rs) |
X (Rs) |
Y (Rs) |
|
|
Direct materials |
1,000 |
2,000 |
4,000 |
2,000 |
1,000 |
|
Direct wages Factory |
5,000 |
2,000 |
8,000 |
1,000 |
2,000 |
|
rent |
4,000 |
||||
|
Power |
2,500 |
||||
|
Depreciation |
1,000 |
||||
|
Other overheads |
9,000 |
Additional information:
|
A |
B |
C |
X |
||
|
Area (square feet) |
500 |
250 |
500 |
250 |
500 |
|
Capital value of asset (In lakh rupees) |
20 |
40 |
20 |
10 |
10 |
|
Machine hours |
1,000 |
2,000 |
4,000 |
1,000 |
1,000 |
|
HP of machines |
50 |
80 |
80 |
15 |
25 |
A technical assessment of the apportionment of expenses of service apartments is as follows:
|
A |
B |
C |
X |
Y |
|
|
Service departments X |
45% |
15% |
30% |
10% |
|
|
60% |
35% |
5% |
You are required to prepare
- (i) A statement showing the distribution of overheads to various departments.
- (ii) A statement showing the redistribution of expenses of service departments to production departments.