Amit Company has five departments of which P, N, R and S are producing departments and T is a service department. The actual costs for a period are as follows:
|
Rs |
|
|
Repairs |
2,000 |
|
Rent |
2,500 |
|
Depreciation |
1,200 |
|
Supervision |
4,000 |
|
Insurance |
1,500 |
|
Employer’s liability of employees’ insurance |
600 |
|
Light |
1,800 |
The following data are also available for the five departments:
|
Department P |
Department N |
Department R |
Department S |
Department T |
|
|
Area (square feet) |
140 |
120 |
110 |
90 |
40 |
|
Number of workers |
25 |
20 |
10 |
10 |
5 |
|
Total wages (Rs) |
10,000 |
8,000 |
5,000 |
5,000 |
2,000 |
|
Value of plant (Rs) |
20,000 |
18,000 |
16,000 |
10,000 |
6,000 |
|
Value of stock (Rs) |
15,000 |
10,000 |
5,000 |
2,000 |
Apportion the costs to the various departments on an equitable basis.
|
Total |
P |
N |
R |
S |
T |
|
13600 |
4451 |
3626 |
2582 |
1997 |
944 |