Calculate the overheads allocated to production departments A and B from the following: There are two service departments X and Y. X renders service to A and B in the ratio 3:2 and Y renders service to A and B in the ratio 9:1. Overhead as per primary overhead distribution is A—Rs 49,800; B—Rs 29,600; X—Rs 15,600; Y—Rs 10,800.
|
Production departments |
Service departments |
||||
|
A |
B |
C |
X |
Y |
|
|
Direct wages (Rs) |
7,000 |
6,000 |
5,000 |
1,000 |
1,000 |
|
Direct materials (Rs) |
3,000 |
2,500 |
2,000 |
1,500 |
1,000 |
|
Employees (number) |
200 |
150 |
150 |
50 |
50 |
|
Electricity (units) |
8,000 |
6,000 |
6,000 |
2,000 |
3,000 |
|
Light points (number) |
10 |
15 |
15 |
||
|
Asset value (Rs) |
50,000 |
30,000 |
20,000 |
10,000 |
10,000 |
|
Area occupied (square yards) |
800 |
600 |
600 |
200 |
200 |
The expenses (in rupees) for the month were as follows:
|
Stores overheads (Rs) |
400 |
|
Motive power (Rs) |
1,500 |
|
Lighting (Rs) |
200 |
|
Labour welfare (Rs) |
3,000 |
|
Depreciation (Rs) |
6,000 |
|
Repairs and maintenance (Rs) |
1,200 |
|
General overheads (Rs) |
1,000 |
|
Rent and rates (Rs) |
600 |
Apportion the expenses of X in the ratio 4:3:3 and those of department Y in the proportion of direct wages to departments A, B and C, respectively.
|
Total |
— 18,400 |
5,190 |
3,520 |
2,850 |
3,650 |
3,190 |
|
Department X4:3:3 |
— — |
1,460 |
1,095 |
1,095 |
( 3,650) |
— |
|
Department Y76:5 |
— — |
1,241 |
1,063 |
886 |
— |
( 3,190) |
|
18,400 |
7,891 |
5,678 |
4,831 |