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1. In a factory, there are three production departments and two service departments. Thefollowing figures are available for the year ended 31 December 2007.

Items ProductionDepartment

ServiceDepartment

X Y Z 1 2Direct wages (rs) 30000 45000 60000 15000 30000Direct Material (Rs) 15000 30000 30000 22500 22500Staff Members 6 9 9 3 2Electricity (kWh) 6000 4500 3000 1500 1500Assets value (Rs) 60000 40000 30000 10000 10000Light point 10 16 4 6 4Area (sq mt) 150 250 50 50 -Prepare a statement of primary distribution of overheads, and calculate the total expenses of

each department.The expenses for the period were:

Power Rs 1100Stores overhead Rs 800Deprecation Rs 30000General overheads Rs 12000Lighting Rs 200Welfare of staff Rs 3000Repairs Rs 6000rent Rs 550

2. The Modern company is having four departments out of which A, B and C are the producingdepartments and D is the servicing department.

The actual cost for a period is as follows:

Rent 2000Deprecation 900Supervision 3000Employees liability insurance 300Repairs 1200Light 200Insurance of stock 1000Power 1800The following data are available in respect of four departments.

A B C DArea (sq ft) 150 110 90 50No of light points 15 11 9 5

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No of workers 24 16 12 8Total wages (Rs) 8000 6000 4000 2000Value of plant(Rs)

24000 18000 12000 6000

Value of stock 15000 9000 6000 -

Horse power of machine 12 9 6 3

Apportion the costs to the various departments on the most equitable basis.

3 The Ultra modern Company Ltd is divided into four departments A, B an C are theproduction departments and S is the service department. The actual costs for October 2007

were as follows:

RsRent 1000Repairs to plants 600Deprecation of Plant 450Light 100Supervision 1500Fire insurance stock 500Power 900Employees state insurance contribution 150The following information is available regarding the four departments.

Departments A B C DArea (sq ft) 1500 1100 900 500No of employees 20 15 10 5Total wages (Rs) 6000 4000 3000 2000Value of plant (Rs) 24000 18000 12000 6000Value of stock (Rs) 15000 9000 6000 -Apportion the cost to the various departments by preparing a overhead distribution chart.

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4 A companys production for the year ending 30 6 2007 is given below:Items Production

departmentOffice Store Workshop Total

P1 P2 P3Directwages

20000 25000 30000 - - - 75000

Direct

material

30000 35000 45000 - - - 110000

Indirectmaterial

2000 3000 3000 1000 2000 2000 13000

Indirectwages

3000 3000 4000 10000 10000 5000 35000

Area (sqmt)

200 2500 300 150 100 250 1250

Bookvalue of Machinery

30000 35000 25000 - - 15000 105000

Total

hoursepower of machinery

15 20 25 - - 5 15

Machinehourworked

10000 20000 15000 - - 5000 50000

General expenses :Rent Rs 12500Insurance Rs 1050Power Rs 3800Light Rs 1250

Deprecation rte is 15% of the value of machinery.You are required to repaper an overhead analysis sheet for the department showing clearlythe basis for apportionment where ever necessary.