Company B is a manufacturing company. The production process is divided into two productiondepartments: Assembly and Finishing. There is one service department, the Stores department, which isused by both production departments. The relevant information for the year ahead is as follows:Total Overheads for all the departments:ItemTotal (£)20,00060,00080,000DepreciationRentTOTALThe following information is available about each department:Assembly Finishing Stores75,000 20,000 5,00050,000ItemFloor Space(m²)Value ofmachinery (£)Storesrequisitions50,0001,0001,000Considering 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 overheadsallocated to the Finishing department equal £22, 000.O d. None of the answers is true.

Overhead is the amount of money incurred by the entity on the making of the goods. It includes the…

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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