Power 1800 Lighting 1700 Rent and rates 8000 Indirect wages 6000 Sundry Expenses 2000 Depreciation on Machinery 8000 Production Departments Service Department A Working Hours 4000 3000 2000 Direct wages (S) 3000 2000 3000 Cost of Machinery 75000 50000 25000 H.P. of Machinery 60 30 10 Light points 18 12 10 Floor Area (Sa. ft.) 1000 1200 800 Apportion the costs of the various departments on the most equitable basis.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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ABB is company engaged production of medical devices .The Company has two production departments A, B and one service department S. The actual costs for a period are as follows:

 

Power
1800
Lighting
1700
Rent and rates
8000
Indirect wages
6000
Sundry Expenses
2000
Depreciation on Machinery
8000
Production Departments
Service Department
A
B
Working Hours
4000
3000
2000
Direct wages (S)
3000
2000
3000
Cost of Machinery
75000
50000
25000
H.P. of Machinery
60
30
10
Light points
18
12
10
Floor Area (Sq. ft.)
1000
1200
800
Apportion the costs of the various departments on the most equitable basis.
Transcribed Image Text:Power 1800 Lighting 1700 Rent and rates 8000 Indirect wages 6000 Sundry Expenses 2000 Depreciation on Machinery 8000 Production Departments Service Department A B Working Hours 4000 3000 2000 Direct wages (S) 3000 2000 3000 Cost of Machinery 75000 50000 25000 H.P. of Machinery 60 30 10 Light points 18 12 10 Floor Area (Sq. ft.) 1000 1200 800 Apportion the costs of the various departments on the most equitable basis.
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