PH Ltd. is a manufacturing company having the production departments A, B and C and two service departments X and Y. The following is the budget for December:
|
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 (Rs) |
2,500 |
|||||
|
Depreciation (Rs) |
1,000 |
|||||
|
Other overheads (Rs) |
9,000 |
|||||
|
Additional information: |
||||||
|
Area (square feet) |
500 |
250 |
500 |
250 |
500 |
|
|
Capital value of assets (In lakh rupees) |
20 |
40 |
20 |
10 |
10 |
|
|
Machine hours |
1,000 |
2,000 |
4,000 |
1,000 |
1,000 |
|
|
HP of machines |
50 |
40 |
20 |
15 |
25 |
A technical assessment for the apportionment of expenses of service departments is as follows:
|
A(%) |
B(%) |
C(%) |
X(%) |
Y(%) |
|
|
Service department X |
45 |
15 |
30 |
10 |
|
|
Service department Y |
60 |
35 |
5 |
You are required to prepare the following:
|
(a) A statement showing distribution of overheads to various departments. |
|
(b) A statement showing redistribution of service departments’ expenses to production departments. |
|
(c) Machine hour rates of the production departments A, B and C. |