Edward ltd comprises of 3 production departments and 2 service departments. The following information is provided for Edward Ltd for 2019. Supervisor's Salary $ Machining 300,000 Assembly 200,000 Finishing 250,000 Canteen 120,000 Maintenance 150,000 $ Factory Rent 300,000 Heat & Light 200,000 General Repairs 60,000 Machine Depreciation 80,000 Machine Insurance 90,000 Business Rates 75,000 Machining Assembly Finishing Canteen Maintenance Floor Space occupied (m2) 400 200 200 150 50 Value of machinery ($'000) 300 400 200 50 50 The service department work for other departments as follows Machining Assembly Finishing Canteen Maintenance Service carried out by canteen Canteen 30% 30% 40% Maintenance 25% 50% 25% Using the overhead analysis sheet for 2019, determine the overhead allocated and apportioned to each of the five departments. Calculate the total overheads included in the production departments after the reapportionment of the service department using the direct method
Edward ltd comprises of 3 production departments and 2 service departments. The following information is provided for Edward Ltd for 2019. Supervisor's Salary $ Machining 300,000 Assembly 200,000 Finishing 250,000 Canteen 120,000 Maintenance 150,000 $ Factory Rent 300,000 Heat & Light 200,000 General Repairs 60,000 Machine Depreciation 80,000 Machine Insurance 90,000 Business Rates 75,000 Machining Assembly Finishing Canteen Maintenance Floor Space occupied (m2) 400 200 200 150 50 Value of machinery ($'000) 300 400 200 50 50 The service department work for other departments as follows Machining Assembly Finishing Canteen Maintenance Service carried out by canteen Canteen 30% 30% 40% Maintenance 25% 50% 25% Using the overhead analysis sheet for 2019, determine the overhead allocated and apportioned to each of the five departments. Calculate the total overheads included in the production departments after the reapportionment of the service department using the direct method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Edward ltd comprises of 3 production departments and 2 service departments. The following information is provided for Edward Ltd for 2019.
| Supervisor's Salary | $ | |
| Machining | 300,000 | |
| Assembly | 200,000 | |
| Finishing | 250,000 | |
| Canteen | 120,000 | |
| Maintenance | 150,000 |
| $ | |
| Factory Rent | 300,000 |
| Heat & Light | 200,000 |
| General Repairs | 60,000 |
| Machine Depreciation | 80,000 |
| Machine Insurance | 90,000 |
| Business Rates | 75,000 |
| Machining | Assembly | Finishing | Canteen | Maintenance | |
| Floor Space occupied (m2) | 400 | 200 | 200 | 150 | 50 |
| Value of machinery ($'000) | 300 | 400 | 200 | 50 | 50 |
The service department work for other departments as follows
| Machining | Assembly | Finishing | Canteen | Maintenance | |
| Service carried out by canteen | |||||
| Canteen | 30% | 30% | 40% | ||
| Maintenance | 25% | 50% | 25% |
Using the overhead analysis sheet for 2019, determine the overhead allocated and apportioned to each of the five departments.
Calculate the total
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