XYZ Ltd. has three production departments (P, Q, and R) and two service departments (X and Y).
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XYZ Ltd. has three production departments (P, Q, and R) and two service departments (X and Y). The following data relate to these departments:
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Particulars Direct wages Worked hours Value of machine HP of machines Light points Floor space (square feet) Additional information Rent Lighting Power Indirect wages Depreciation on machines Sundries P *30,000 3,070 6,00,000 60 10 2,000 Q 20,000 4,475 8,00,000 30 15 2,500 R *30,000 2,419 10,00,000 50 20 3,000 X *15,000 50,000 10 10 2,000 Y 1,950 50,000 5 500 *50,000 6,000 15,000 19,390 1,00,000 96,950 Determine overhead recovery rate per hour for production departments, if X's expenses are distributed to P, Q, R, and Y in the ratio of 2: 3:4:1 and Y's expenses are distributed in the ratio of 4: 2:3:1 to P, Q, R, and X respectively.
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Related Book For
Management Accounting Text Problems And Cases
ISBN: 9781259026683
6th Edition
Authors: M Y Khan, P K Jain
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