rhead costs incurred during a four-week period were: $ $ Indirect wages and salaries Dept A 8 000 Dept B 6 000 Dept C 7000 Dept D 5000
Basic Company Ltd. has three production departments A, B and C and a service department.
The
$ $
Indirect wages and salaries
Dept A 8 000
Dept B 6 000
Dept C 7000
Dept D 5000
26 000
National Insurance 1560
Rent and Rates 1200
Repairs to plant and machinery 1200
Heating and Lighting 600
Power 1120
Insurance of stock 700
Medical Costs 40
Depreciation of plant and machinery 900
The following information is also available:
Dept A Dept B Dept C Dept D
Area in square feet 20 000 16 000 14 000 10 000
Number of employees 40 24 30 26
Book value of plant & Machinery $20 000 $24 000 $12 000 $4 000
Average stock value $4 000 $3 000 $3 000 -----
Horsepower of machines 240 190 110 20
Required:
Prepare the overhead analysis sheet, carrying out the allocation and apportionment of overhead
to the four departments.
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