XYZ. Manufacturing overheads: BWP Lighting & Heating 8 000 Administration employees 70 000 Employee accident insurance 1 200 Plant and Equipment Insurance 70 000 Plant and Equipment maintenance & repairs (minor) 20 000 Plant and Equipment maitenance & repairs (major) 200 000 Rent 25 000 department 1 department 2 department 3 area occupied sdm 1200 2300 3500 deppreciation 20000 40000 60000 no of employees 10 18 28 book value 250000 450000 700000 maintanance hours 18000 25000 43000 indirect materias 8000 12000 20000 indirect labour 10000 14000 24000 Required: a. Allocate the manufacturing overheads by departments
XYZ. Manufacturing overheads: BWP Lighting & Heating 8 000 Administration employees 70 000 Employee accident insurance 1 200 Plant and Equipment Insurance 70 000 Plant and Equipment maintenance & repairs (minor) 20 000 Plant and Equipment maitenance & repairs (major) 200 000 Rent 25 000 department 1 department 2 department 3 area occupied sdm 1200 2300 3500 deppreciation 20000 40000 60000 no of employees 10 18 28 book value 250000 450000 700000 maintanance hours 18000 25000 43000 indirect materias 8000 12000 20000 indirect labour 10000 14000 24000 Required: a. Allocate the manufacturing overheads by departments
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following information relates to company XYZ.
Manufacturing
BWP
Lighting & Heating 8 000
Administration employees 70 000
Employee accident insurance 1 200
Plant and Equipment Insurance 70 000
Plant and Equipment maintenance & repairs (minor) 20 000
Plant and Equipment maitenance & repairs (major) 200 000
Rent 25 000
| department 1 | department 2 | department 3 | |
| area occupied sdm | 1200 | 2300 | 3500 |
| deppreciation | 20000 | 40000 | 60000 |
| no of employees | 10 | 18 | 28 |
| book value | 250000 | 450000 | 700000 |
| maintanance hours | 18000 | 25000 | 43000 |
| indirect materias | 8000 | 12000 | 20000 |
| indirect labour | 10000 | 14000 | 24000 |
Required:
a. Allocate the manufacturing overheads by departments
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