A factory has two service departments P and Q and three production departments A, B, and C. You are supplied with the following information:
|
Particulars |
Total |
Production Departments |
Service Departments |
|||
|
A |
B |
C |
P |
Q |
||
|
Rs |
Rs |
Rs |
Rs |
Rs |
Rs |
|
|
Rent |
12,000 |
2,400 |
4,800 |
2,000 |
2,000 |
800 |
|
Electricity |
4,000 |
800 |
2,000 |
500 |
400 |
300 |
|
Indirect labour |
6,000 |
1,200 |
2,000 |
1,000 |
800 |
1,000 |
|
Depreciation of machinery |
5,000 |
2,500 |
1,600 |
200 |
500 |
200 |
|
Sundries |
4,500 |
910 |
2,143 |
847 |
300 |
300 |
|
Estimated working hours |
1,000 |
2,000 |
1,400 |
|||
Expenses of Service Departments P and Q are apportioned as under:
|
A |
B |
C |
P |
Q |
|
|
P |
30% |
40% |
20% |
|
10% |
|
Q |
10% |
20% |
50% |
20% |
|
You are required to show the apportionment of overheads under different methods of apportioning inter service departments overheads and also to work out the production hour rate recovery of overheads in departments A, B and C.