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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
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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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 Machine Depreciation Machine insurance Business Rates 300,000 Assembly 200,000 Finishing 250,000 Canteen 120,000 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 Service carried out by: Canteen Maintenance 200 400 The service departments work for the other departments as follows: 30% 25% 200 200 30% 50% Machining Assembly Finishing Canteen Maintenance Maintenance 40% 25% 50 50 Required: a. Using Edward's Ltd overhead analysis sheet for 2019, determine the overhead allocated and apportioned to each of the five departments.
Transcribed Image Text: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 Machine Depreciation Machine insurance Business Rates 300,000 Assembly 200,000 Finishing 250,000 Canteen 120,000 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 Service carried out by: Canteen Maintenance 200 400 The service departments work for the other departments as follows: 30% 25% 200 200 30% 50% Machining Assembly Finishing Canteen Maintenance Maintenance 40% 25% 50 50 Required: a. Using Edward's Ltd overhead analysis sheet for 2019, determine the overhead allocated and apportioned to each of the five departments.
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