A company has 3 production departments P1-Cutting P2-Assembly and P3-Finishing and two service departments S1-Stores and...
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A company has 3 production departments P1-Cutting P2-Assembly and P3-Finishing and two service departments S1-Stores and 52-Maintainance.The following figures are extracted from the records of the company for a particular period. Particulars Insurance- Factory Depreciation of Machinery Lighting Power Supervisor's Salary Insurance -Machinery Amount 60,000 50,000 70,000 85,000 90,000 75,000 Other Information: Particulars Floor area (sqft) No of Light points No of Employees Direct Wages (Rs) Indirect Wages (Rs) Horse Power of Machines Value of Machinery (Rs) Production hours worked P2 P3 S1 S2 1,000 1,250 1,500 1,000 250 10 15 20 10 5 20 15 10 5 5 15,000 12,000 14,000 12,000 10,000 10,000 15,000 15,000 8,000 6,000 60 40 50- 150,000 100,000 50,000 - 2,000 3,000 2,500 - Expenses of Service Departments S1 and S2 are apportioned as below: Departments S1 S2 You are required to S2 10% P2 P3 S1 52 30% 40% 40% 30% 20%- 20% 10%- a) Allocate and apportion the overheads to all the departments (Primary distribution) and reapportion the overheads of service departments to production departments using either Repeated distribution method or simultaneous equation method (Secondary distribution). b) Compute the Overhead rate per production hour for each of the production department c) What would be the total cost of one unit of Product ZX' whose direct material cost is Rs. 1500 and direct labour cost is Rs. 500 and it is processed in department P1 for 4 hours, department P2 for 6 hours and department P3 for 5 hours respectively. A company has 3 production departments P1-Cutting P2-Assembly and P3-Finishing and two service departments S1-Stores and 52-Maintainance.The following figures are extracted from the records of the company for a particular period. Particulars Insurance- Factory Depreciation of Machinery Lighting Power Supervisor's Salary Insurance -Machinery Amount 60,000 50,000 70,000 85,000 90,000 75,000 Other Information: Particulars Floor area (sqft) No of Light points No of Employees Direct Wages (Rs) Indirect Wages (Rs) Horse Power of Machines Value of Machinery (Rs) Production hours worked P2 P3 S1 S2 1,000 1,250 1,500 1,000 250 10 15 20 10 5 20 15 10 5 5 15,000 12,000 14,000 12,000 10,000 10,000 15,000 15,000 8,000 6,000 60 40 50- 150,000 100,000 50,000 - 2,000 3,000 2,500 - Expenses of Service Departments S1 and S2 are apportioned as below: Departments S1 S2 You are required to S2 10% P2 P3 S1 52 30% 40% 40% 30% 20%- 20% 10%- a) Allocate and apportion the overheads to all the departments (Primary distribution) and reapportion the overheads of service departments to production departments using either Repeated distribution method or simultaneous equation method (Secondary distribution). b) Compute the Overhead rate per production hour for each of the production department c) What would be the total cost of one unit of Product ZX' whose direct material cost is Rs. 1500 and direct labour cost is Rs. 500 and it is processed in department P1 for 4 hours, department P2 for 6 hours and department P3 for 5 hours respectively.
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