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1. In a factory, there are three production departments and two service departments.

The following figures are available for the year ended 31 December 2007. Items Production Service Department Department X Y Z 1 2 Direct wages (rs) 30000 45000 60000 15000 30000 Direct Material (Rs) 15000 30000 30000 22500 22500 Staff Members 6 9 9 3 2 Electricity (kWh) 6000 4500 3000 1500 1500 Assets value (Rs) 60000 40000 30000 10000 10000 Light point 10 16 4 6 4 Area (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 1100 Stores overhead Rs 800 Deprecation Rs 30000 General overheads Rs 12000 Lighting Rs 200 Welfare of staff Rs 3000 Repairs Rs 6000 rent Rs 550

2. The Modern company is having four departments out of which A, B and C are the producing departments and D is the servicing department. The actual cost for a period is as follows: Rent 2000 Deprecation 900 Supervision 3000 Employees liability insurance 300 Repairs 1200 Light 200 Insurance of stock 1000 Power 1800 The following data are available in respect of four departments. A 150 15 B 110 11 C 90 9 D 50 5

Area (sq ft) No of light points

No of workers 24 16 12 Total wages (Rs) 8000 6000 4000 Value of plant 24000 18000 12000 (Rs) Value of stock 15000 9000 6000 Horse power of 12 9 6 machine Apportion the costs to the various departments on the most equitable basis.

8 2000 6000 3

The Ultra modern Company Ltd is divided into four departments A, B an C are the production departments and S is the service department. The actual costs for October 2007 were as follows: Rs Rent 1000 Repairs to plants 600 Deprecation of Plant 450 Light 100 Supervision 1500 Fire insurance stock 500 Power 900 Employees state insurance contribution 150 The following information is available regarding the four departments. Departments A B C D Area (sq ft) 1500 1100 900 500 No of employees 20 15 10 5 Total wages (Rs) 6000 4000 3000 2000 Value of plant (Rs) 24000 18000 12000 6000 Value of stock (Rs) 15000 9000 6000 Apportion the cost to the various departments by preparing a overhead distribution chart.

A companys production for the year ending 30 6 2007 is given below: Items Production Office Store Workshop Total department P1 P2 P3 Direct 20000 25000 30000 75000 wages Direct 30000 35000 45000 110000 material Indirect 2000 3000 3000 1000 2000 2000 13000 material Indirect 3000 3000 4000 10000 10000 5000 35000 wages Area (sq 200 2500 300 150 100 250 1250 mt) Book 30000 35000 25000 15000 105000 value of Machinery Total 15 20 25 5 15 hourse power of machinery Machine 10000 20000 15000 5000 50000 hour worked General expenses : Rent Rs 12500 Insurance Rs 1050 Power Rs 3800 Light Rs 1250 Deprecation rte is 15% of the value of machinery. You are required to repaper an overhead analysis sheet for the department showing clearly the basis for apportionment where ever necessary.