XL LLC has three production departments and four service departments. The expenses for these departments are as follows: Production Departments Amount (RO) A 3,000,000 B 2,600,000 C 2,400,000 Total Amount 8,000,000 Service Departments Amount (RO) Stores 400,000 Time keeping & accounts 300,000 Power 160,000 Canteen 100,000 Total Amount 960,000 The following information is also available in respect of the production departments: Particulars Department A Department B Department C Horse power of machine 300 300 200 Number of workers 20 15 15 Value of stores requisition (RO) 250,000 150,000 100,000 Apportion the cost of service department over the production departments
XL LLC has three production departments and four service departments. The expenses for these departments are as follows: Production Departments Amount (RO) A 3,000,000 B 2,600,000 C 2,400,000 Total Amount 8,000,000 Service Departments Amount (RO) Stores 400,000 Time keeping & accounts 300,000 Power 160,000 Canteen 100,000 Total Amount 960,000 The following information is also available in respect of the production departments: Particulars Department A Department B Department C Horse power of machine 300 300 200 Number of workers 20 15 15 Value of stores requisition (RO) 250,000 150,000 100,000 Apportion the cost of service department over the production departments
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
XL LLC has three production departments and four service departments. The expenses for these departments are as follows:
|
Production Departments |
Amount (RO) |
|
A |
3,000,000 |
|
B |
2,600,000 |
|
C |
2,400,000 |
|
Total Amount |
8,000,000 |
|
Service Departments |
Amount (RO) |
|
Stores |
400,000 |
|
Time keeping & accounts |
300,000 |
|
Power |
160,000 |
|
Canteen |
100,000 |
|
Total Amount |
960,000 |
The following information is also available in respect of the production departments:
|
Particulars |
Department A |
Department B |
Department C |
|
Horse power of machine |
300 |
300 |
200 |
|
Number of workers |
20 |
15 |
15 |
|
Value of stores requisition (RO) |
250,000 |
150,000 |
100,000 |
Apportion the cost of service department over the production departments.
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