Company B is a manufacturing company. The production process is divided into two production departments: Assembly and Finishing. There is one service department, the Stores department, which is used by both production departments. The relevant information for the year ahead is as follows: Total Overheads for all the departments: Item Total (£) 20,000 60,000 80,000 Depreciation Rent TOTAL The following information is available about each department: Assembly Finishing Stores 75,000 20,000 5,000 Item Floor Space (m²) Value of machinery (£) Stores requisitions 50,000 1,000 50,000 1,000 Considering this information, which of the following statements is true? O a. Total overheads allocated to the Assembly department equal £23, 500. O b. Total overheads allocated to the Finishing department equal £23, 500. O c. Total overheads allocated to the Assembly department equal £55,000 and total overheads allocated to the Finishing department equal £22,000. O d. None of the answers is true.
Company B is a manufacturing company. The production process is divided into two production departments: Assembly and Finishing. There is one service department, the Stores department, which is used by both production departments. The relevant information for the year ahead is as follows: Total Overheads for all the departments: Item Total (£) 20,000 60,000 80,000 Depreciation Rent TOTAL The following information is available about each department: Assembly Finishing Stores 75,000 20,000 5,000 Item Floor Space (m²) Value of machinery (£) Stores requisitions 50,000 1,000 50,000 1,000 Considering this information, which of the following statements is true? O a. Total overheads allocated to the Assembly department equal £23, 500. O b. Total overheads allocated to the Finishing department equal £23, 500. O c. Total overheads allocated to the Assembly department equal £55,000 and total overheads allocated to the Finishing department equal £22,000. O d. None of the answers is true.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Company B is a manufacturing company. The production process is divided into two production
departments: Assembly and Finishing. There is one service department, the Stores department, which is
used by both production departments. The relevant information for the year ahead is as follows:
Total Overheads for all the departments:
Item
Total (£)
20,000
60,000
80,000
Depreciation
Rent
TOTAL
The following information is available about each department:
Assembly Finishing Stores
75,000 20,000 5,000
50,000
Item
Floor Space
(m²)
Value of
machinery (£)
Stores
requisitions
50,000
1,000
1,000
Considering this information, which of the following statements is true?
O a. Total overheads allocated to the Assembly department equal £23, 500.
O b. Total overheads allocated to the Finishing department equal £23, 500.
O c. Total overheads allocated to the Assembly department equal £55,000 and total overheads
allocated to the Finishing department equal £22, 000.
O d. None of the answers is true.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F55a2f5e2-2562-4a63-8199-89250e06b38a%2F66e59a10-3c3e-4467-95ea-7832a20e0111%2Fbg5kutc_processed.png&w=3840&q=75)
Transcribed Image Text:Company B is a manufacturing company. The production process is divided into two production
departments: Assembly and Finishing. There is one service department, the Stores department, which is
used by both production departments. The relevant information for the year ahead is as follows:
Total Overheads for all the departments:
Item
Total (£)
20,000
60,000
80,000
Depreciation
Rent
TOTAL
The following information is available about each department:
Assembly Finishing Stores
75,000 20,000 5,000
50,000
Item
Floor Space
(m²)
Value of
machinery (£)
Stores
requisitions
50,000
1,000
1,000
Considering this information, which of the following statements is true?
O a. Total overheads allocated to the Assembly department equal £23, 500.
O b. Total overheads allocated to the Finishing department equal £23, 500.
O c. Total overheads allocated to the Assembly department equal £55,000 and total overheads
allocated to the Finishing department equal £22, 000.
O d. None of the answers is true.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education