Question 2 Edward Ltd comprises of three production departments and two service departments. The following information is provided for Edward Ltd for 2019. £ Supervisor's salaries Machining Factory Rent Heat and light General Repairs 300,000 Assembly 200,000 Finishing 250,000 Canteen 120,000 Machine Depreciation Machine insurance Business Rates Maintenance 150,000 £ 300,000 200,000 60,000 80,000 90,000 75,000 Machining Assembly Finishing Canteen 150 50 Floor space occupied (m2) 400 Value of machinery (£'000) 300 200 400 The service departments work for the other departments as follows: 200 200 30% 25% Machining Assembly Finishing Canteen Maintenance 30% 50% Maintenance Service carried out by: Canteen Maintenance Required: a. Using Edward's Ltd overhead analysis sheet for 2019, determine the overhead allocated and apportioned to each of the five departments. 50 50 40% 25%

Question 2 Edward Ltd comprises of three production departments and two service departments. The following information is provided for Edward Ltd for 2019. £ Supervisor's salaries Machining Factory Rent Heat and light General Repairs 300,000 Assembly 200,000 Finishing 250,000 Canteen 120,000 Machine Depreciation Machine insurance Business Rates Maintenance 150,000 £ 300,000 200,000 60,000 80,000 90,000 75,000 Machining Assembly Finishing Canteen 150 50 Floor space occupied (m2) 400 Value of machinery (£'000) 300 200 400 The service departments work for the other departments as follows: 200 200 30% 25% Machining Assembly Finishing Canteen Maintenance 30% 50% Maintenance Service carried out by: Canteen Maintenance Required: a. Using Edward's Ltd overhead analysis sheet for 2019, determine the overhead allocated and apportioned to each of the five departments. 50 50 40% 25%

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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