A company has four departments. The actual costs for the period are given as follows. Apportion the costs to the various departments by 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 the four departments:
|
Data |
A |
B |
C |
D |
|
Area (square feet) |
150 |
110 |
90 |
50 |
|
Number of workers |
24 |
16 |
12 |
8 |
|
Total wages (Rs) |
8,000 |
6,000 |
4,000 |
2,000 |
|
Value of plant (Rs) |
24,000 |
18,000 |
12,000 |
6,000 |
|
Value of stock (Rs) |
15,000 |
9,000 |
6,000 |
Note: Insurance has been apportioned on the basis of the value of stock, under the assumption that it is only with regard to stock. Lighting has been distributed on the basis of area as no other relevant data are available as to the number of light points.