Details $ Advertising expenses 140,000 Office expenses 400,000 Depreciation of office equipment 895,000 Direct raw materials 1,650,000 Production foremen salaries 540,000 Production workers wages 1,050,000 Indirect material charges 420,000 Depreciation of factory machinery 955,000 Carriage outwards 85,000 Wages of truck drivers 1,700,000 Electricity 960,000 Administrative staff salaries 3,200,000 Warehouse staff salaries 2,300,000 Salesmen commission 6,500,000 License fee 500,000 Insurance 600,000
|
Details |
$ |
|
Advertising expenses |
140,000 |
|
Office expenses |
400,000 |
|
|
895,000 |
|
Direct raw materials |
1,650,000 |
|
Production foremen salaries |
540,000 |
|
Production workers wages |
1,050,000 |
|
Indirect material charges |
420,000 |
|
Depreciation of factory machinery |
955,000 |
|
Carriage outwards |
85,000 |
|
Wages of truck drivers |
1,700,000 |
|
Electricity |
960,000 |
|
Administrative staff salaries |
3,200,000 |
|
Warehouse staff salaries |
2,300,000 |
|
Salesmen commission |
6,500,000 |
|
License fee |
500,000 |
|
Insurance |
600,000 |
|
|
|
Notes: Apportion the following charges as indicated below:
|
Details |
Factory |
Administration |
Distribution |
Selling |
|
Electricity |
40% |
25% |
20% |
15% |
|
Insurance |
45% |
20% |
15% |
20% |
- Identify the factory
overheads:
(i) Production foreman salaries
(ii) License fees
(iii) Direct expenses
(iv) Production workers wages
(v) Indirect factory labour
(vi) Indirect raw material
(vii) Depreciation – showroom
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