Accounting for Overhead (b) Rate per machine hours if re-distribution from Canteen department

in a ratio of 8:2 into packaging and filtering departments.

[Q. No.1] Following information are provided :
[Q.No.3] The following informations were extracted from the books of a
Particulars Production Departments Service Department
manufacturing company having two production department and one service
P1 P2 S1 S2 department, where 20days are worked during a month with 8 working hours per
Direct Wages (in Rs.) 5,000 2,000 1,000 2,000 day;
Direct Material (in Rs.) 4,000 1,000 3,000 2,000 Supervision cost Rs.10,000
Machine hour 4,000 7,000 3,000 6,000 Fire precaution cost Rs.10,000
No. of staff 80 30 50 40 Power and fuel Rs.15,000
Store receiving expenses Rs.20,000
Repair charge (in Rs.) 2,000 1,000 3,000 1,000
Lighting and heating Rs.5,000
Area occupied (Sq. ft.) 200 150 50 100
Insurance expenses Rs.30,000
HP of Machine 2 2 4 1
Time keeping and personal department cost Rs.15,000
Cost of Assets 3,00,000 4,00,000 3,00,000 - Other informations related to the production house are:
Sales Revenue (in Rs.) 2,00,000 5,00,000 2,00,000 1,00,000 Particulars Production Dept. Production Dept. Service Dept.
A B S
The other monthly expenses provided to you are as follows: Direct Material 20,000 20,000 10,000
Canteen and cafeteria Rs.20,000 Diesel and fuel Rs.16,000 (Rs.)
Selling expense Rs.10,000 Repair of machinery Rs.20,000
Hp of Machine 20 50 30
Air conditioning Rs.5,000 Indirect wages Rs.4,000
No. of workers 80 60 60
Audit fee Rs.6,000
Floor space 40 30 30
Depreciation @ 12% p.a.
(Meter)
Required: (a) Primary overhead distribution summary
(b) Overhead rate per machine hour if re-apportionment from S1 to P1 Cost of Machinery Rs.2,00,000 Rs.3,00,000 Rs.1,00,000
and P2 is 3:2 and from S2 to P1 and P2 is 3:3 Depreciation p.a. 12% 18% 12%
Re-distribution 45% 55% -
[Q. No.2] from service dept.
Particulars Packaging Dept. Filtering Dept. Canteen Dept. Required: (a) Overhead distribution statement (b) Overhead rate per DLH

No. of workers 10 25 15 [Q.No.4] The costing records of a company show the following data for the
Space covered 40 30 30 previous year :
Indirect wages (in Rs.) 10,000 5,000 4,000 Production Department Service Dept.
Machine hours 3,000 1,500 500 Particulars
A B C S1 S2
Labour hours 10,000 6,000 4,000
Direct Material cost (Rs.) 35,000 20,000 24,000 8,000 3,000
Cost of building Rs.2,00,000 Rs.1,00,000 Rs.2,00,000
Hp of machine 1 4 2 Dierct Labour cost (Rs.) 10,000 6,000 4,000 3.000 2,000
The other expenses for the departments are as given; No. of employees 300 225 225 75 75
Salaries to packaging department Rs.8,000 per month Electricity (KWH) 6,000 4,500 4,500 1,500 1,500
Lighting expenses of canteen department Rs.48,000 per annum
Rent Rs.3,000 per month No. of light points 10 15 15 5 5
Cost of fuel Rs.5,000 per month Value of assets (Rs.) 40,000 24,000 16,000 8,000 8,000
Sundry expenses Rs.2,000 per month Area covered in sq.mtr. 400 300 300 100 100
Depreciation of machine Rs.5,000 per month
Insurance of building Rs.90,000 per annum Machine hours 2,000 3,000 2,500 - -
Labour welfare Rs.20,000
Required: (a) Monthly overhead distribution statement
The expenses for the year were:
Lighting Rs.7,000 Labour welfare Rs.18,000
Diesel cost Rs.9,000 Store overhead Rs.1,400
Rent Rs.2,400 Repair Rs.4,800
Depreciation Rs.24,000
Apportion the expenses of service department S1 in the ratio of 4:3:3 and that of
S2 in the ratio of direct wages to production departments.
Required: (a) Primary overhead distribution summary
(b) Overhead rate per machine hour