A company has four departments A, B, C, which are production departments, and D, which is a service department. Costs of the department D are apportioned on the basis of the wages paid. The actual costs for the year were as follows:
|
Rent |
Rs 21,000 |
|
Repairs to plant |
Rs 1,26,000 |
|
Depreciation of plant |
Rs 9,450 |
|
Light and power |
Rs 2,100 |
|
Supervision |
Rs 31,500 |
|
Repairs to building |
Rs 8,400 |
The following information about the departments is available and is used as a basis for the distribution of costs.
|
Departments |
Area (square Metres) |
No. of employees |
Wages paid |
Value of plant |
|
A |
1,500 |
20 |
126,000 |
3,15,000 |
|
B |
1,100 |
55 |
84,000 |
1,89,000 |
|
C |
900 |
10 |
63,000 |
1,26,000 |
|
D |
500 |
5 |
42,000 |
These costs are apportioned to production departments.