. Company Bishkek has following information on overheads Rent expenses USD 20,000 USD 12,000 USD 24,000...

  

Transcribed Image Text:

. Company Bishkek has following information on overheads Rent expenses USD 20,000 USD 12,000 USD 24,000 The company has 2 production and 2 service departments and following information relates to them: Production departments Service departments Production 1 Electricity Depreciation Floor area Kw hours consumed Value of PPE Direct labor hours Machine hours 3,000 16,000 150,000 Canteen Maintenance 1,200 5,600 The service department works as follows for other departments Production departments Production 1 Production 2 4,000 5,000 75,000 3,400 2,700 30% 60% Production 2 70% 40% Canteen 1,000 1,000 5,000 Canteen Maintenance 2,000 2,000 10,000 Service departments Maintenance Having this information calculate following: 1. Allocate and apportion overheads to the departments 2. Using direct method reapportion service department overheads to production departments 3. Calculate the overhead absorption rate for every production department. . Company Bishkek has following information on overheads Rent expenses USD 20,000 USD 12,000 USD 24,000 The company has 2 production and 2 service departments and following information relates to them: Production departments Service departments Production 1 Electricity Depreciation Floor area Kw hours consumed Value of PPE Direct labor hours Machine hours 3,000 16,000 150,000 Canteen Maintenance 1,200 5,600 The service department works as follows for other departments Production departments Production 1 Production 2 4,000 5,000 75,000 3,400 2,700 30% 60% Production 2 70% 40% Canteen 1,000 1,000 5,000 Canteen Maintenance 2,000 2,000 10,000 Service departments Maintenance Having this information calculate following: 1. Allocate and apportion overheads to the departments 2. Using direct method reapportion service department overheads to production departments 3. Calculate the overhead absorption rate for every production department.

Answer rating: 100% (QA)

1 Allocation of Rent and Electricity Production Department 1 Floor Area 3000 3000 4000 4286 Producti... View the full answer